What is Nellie Mae?
Nellie Mae is a subsidiary of Sallie Mae (SLM), the largest originator, funder and servicer of student loans in the United States. Specifically, it is responsible for originating Federal Stafford Loans, PLUS loans, consolidation loans and private loans for students and parents.
How Does Nellie Mae Work?
Nellie Mae acts a subsidiary of the Student Loan Marketing Association, also known as Sallie Mae. Nellie Mae’s function is to originate student loans that offer competitive rates to both students and the parents of students. Nellie Mae originates the popular Federal Stafford Loans, which are offered to students and have all payments deferred until after graduation.
Nellie Mae provides similar loans to parents of students, called PLUS loans, as well as customized private loans and consolidation loans.
Why Does Nellie Mae Matter?
Nellie Mae and Sallie Mae offer millions of students the opportunity to fulfill their education goals in the face of ever increasing higher education costs. By offering loans with the option of deferring payments until after graduation, students are able to attend college without worrying about immediately paying back their student loans.