FAFSA parent seeking non-Sallie Mae options for student loans - recommendations?

My daughter went with Discover Student Loans after comparing rates with like 5 different lenders. Their rates were comparable but their customer service was WAY better than sallie mae. We had a terrible experience with sallie mae when my oldest son went to college so I feel u on wanting to avoid them lol

Before you look at private loans, have you considered Parent PLUS loans through the federal program? The interest rates are fixed at 8.05% for the 2025-2026 academic year, and they come with federal protections that private loans don't offer. You'll need to complete a separate application at studentaid.gov after your FAFSA is processed, but they only check for adverse credit history, not debt-to-income ratios like private lenders. Plus, Parent PLUS loans are eligible for income-contingent repayment if consolidated, which isn't an option with private loans.

We used SoFi for our daughter's gap after federal loans and scholarships. They offered us 7.8% fixed with me as cosigner (I'm in Michigan, not Indiana though). Application was all online and pretty simple. They don't have any prepayment penalties, which was important to us since we're planning to help her pay them off faster after graduation. But definitely exhaust all scholarship options first! Has your son applied for department-specific scholarships at Purdue? Sometimes there's money sitting in department budgets that doesn't get claimed.

wait have you looked into ISAs (income share agreements)? purdue has their own program called back a boiler where your kid doesnt take loans but agrees to pay a % of income after graduation. no interest but still costs something obviously. might be worth checking

I went through this last year with my twins. First, double-check if your student is taking the maximum federal direct loans ($5,500 for freshmen). Since you're in Indiana, look into INvestED - it's Indiana's nonprofit student loan provider with competitive rates and they offer financial literacy resources too. Also - and I know this sounds basic - but have you tried appealing your SAI? We submitted a special circumstances form to the financial aid office explaining that our income on the FAFSA was unusually high due to a one-time bonus, and they adjusted our aid package. If you've had any changes in financial circumstances (job loss, medical expenses, etc.) since filing your FAFSA, it's worth submitting an appeal.

CAREFUL with Parent PLUS loans!!! Yes, they're easy to get, but the interest accrues while your kid is in school AND there's that horrible origination fee. We're drowning in Parent PLUS debt for our oldest because we didn't understand what we were signing up for. The payments are KILLING us now. If your kid might qualify on their own merit (good GPA, etc.), try Citizens Bank or PNC - they had decent rates for us this year for our youngest.

One option I don't see mentioned yet is having your student look for on-campus employment through Federal Work-Study if that was part of their aid package. My son was able to reduce his loan needs by about $3,000 per year through his campus job. Purdue also has the Co-Op program where students alternate semesters of study with paid industry work - the earnings can significantly offset loan needs while providing valuable experience. Might be worth exploring if your son's program offers that option.

my daughter ended up doing this weird patchwork of funding lol. federal loans + a small parent plus + a local credit union loan + her on-campus job. honestly the credit union had the best deal but they would only lend up to $5k per year. maybe check local credit unions in your area?

sofi wrkd good 4 us

I'd recommend contacting Purdue's financial aid office directly. They often have preferred lender lists with organizations they've vetted, and sometimes there are university-specific loan programs or emergency funds that aren't widely advertised. Additionally, since you're an Indiana resident, see if your student qualifies for any state-specific programs through the Indiana Commission for Higher Education. Also, be sure to complete the CSS Profile if Purdue uses it in addition to the FAFSA - it can sometimes unlock institutional aid that the FAFSA doesn't.