The short answer
This charge is a payment to Sallie Mae for a private student loan. Sallie Mae originates and services private education loans for undergraduate, graduate, and professional degrees.
Why is Sallie Mae charging my account?
If you co-signed a loan for a child or took out a private loan to bridge a tuition gap, you are responsible for repayment. Sallie Mae no longer services federal Department of Education loans; they deal exclusively in private loans.
You are seeing this recurring charge because you enrolled in Sallie Mae's auto-debit program. Lenders heavily incentivize auto-pay by offering an interest rate reduction (usually 0.25%).
Why are Sallie Mae payments required while still in school?
Unlike federal loans, many Sallie Mae private loans require borrowers to make fixed ($25) or interest-only payments while still enrolled in school to prevent the balance from exploding.
Can Sallie Mae loans be forgiven?
Because they are private loans, they are completely ineligible for federal programs like PSLF or Biden-Harris IDR forgiveness. They must be paid back in full or refinanced.
How to modify Sallie Mae auto-pay
If you cannot afford the current payment or need to switch the bank account being drafted, you must manage your auto-debit settings on Sallie Mae's online platform.
Canceling auto-pay will increase your interest rate and force you to make manual payments each month. Missing a private loan payment will quickly damage your credit and the credit of any co-signers.
- Log In Sign in to your Sallie Mae online account.
- Auto Debit Settings Go to the payments section and select 'Auto Debit'.
- Edit or Cancel Update your banking routing numbers or cancel the auto-debit entirely.
Independent reference — not affiliated with Sallie Mae. Billing names and policies change; verify with the merchant or your bank before acting.
Verified sources
Every claim on this page is checked against official sources — open them to confirm before you call your bank.
- Sallie Mae Payment Options https://www.salliemae.com
- Sallie Mae In-School Payments https://www.salliemae.com/help-center?ref=unknowncharges
Reviewed Aug 31, 2026 · high · About UnknownCharges