Wells Fargo bank is headquartered in San Francisco, California. It is currently the fourth biggest bank in the country. Wells Fargo, along with three major competitors (Bank of America, JP Morgan Chase, and Citigroup), comprise what is referred to as the “Big Four Banks”. Wells Fargo offers student loans, mortgages, traditional banking options, mutual funds, and other services. The bank has physical locations in most states throughout the nation. In terms of student loan options, Wells Fargo offers new loans, refinancing and consolidation services. Wells Fargo aims to make the lending process simple and as inexpensive as possible.
Highlights of Wells Fargo Student Loans
Wells Fargo’s consolidation process provides a long length of time for borrowers to repay their loans. A repayment term of 15 years or 20 years may be selected. The bank offers discounts to current Wells Fargo members. It is worth noting that the company only refinances private student loans, as such federal loans are ineligible for refinancing through the company. Students who choose to make Wells Fargo their lender benefit from a bank with a strong and enduring reputation in providing lending services. Students who decide to consolidate their loans through Wells Fargo should know that payment begins immediately after the papers are signed. Thus, if the students is still in school, they may want to retain their current provider until graduation. Wells Fargo does not permit deferment of student loans or interest-only payments. For students who are facing challenging circumstances, Wells Fargo permits only two months of forbearance before requiring another twelve months of on time payments. However, students with private loans may want to consider this consolidation process as it may lower their interest rate.
Who is Eligible for Wells Fargo Student Loans?
Students who are seeking to consolidate their private student loans must meet the following criteria:
- U.S. citizens, U.S. nationals, or a permanent resident alien who has a cosigner
- Applicants (and cosigners) who pass a credit check, which includes a review of employment and debt-to-income checks
- Have at least $5,000 outstanding in private student loans
- Applicants must earn at least $12,000 per year in order to consolidate their loans
What are Wells Fargo Student Loans?
The Wells Fargo Loan Consolidation provides applicants the option to consolidate their existing loans for a 15 or 20- year term. Neither option carries an origination fee and students may decide to pay their remaining loan balance off early with no added fees. Current interest rates for a variable rate range from 3.74%-8.74% while the fixed interest rate range is 6.24%-10.99%. Students seeking to lower their interest rate may also be eligible for a customer discount and an automatic payment discount. Students who consolidate through Wells Fargo should also be aware that once the consolidation papers are signed, payments begin immediately without any grace period. The maximum amount of loans that can be consolidated is $120,000. Students who do not have an established credit history or those with a less than stellar credit history may want to add a cosigner, who can help them either qualify for the loan or potentially earn a lower interest rate. In order to release a cosigner from the loan, the student must submit a request in writing. Cosigners will only be released once the past consecutive payments for two years in a row have been made on time. Students should also know that interest only payment are not available as a repayment option. Unlike many other companies, Wells Fargo does not permit deferments on student loans.
Wells Fargo Collegiate Loan provides private loans to undergraduate students. This money can be used to cover tuition, housing, and other educational expenses, such as technology and textbooks needed for courses. The loans are fee-free and there is no charge to complete an application, at the time of the loan origination, or if a student decides to pay the loan off early. Furthermore, students have the option of choosing between a fixed or variable interest rate. Students have a grace period of six months after graduation prior to the commencement of their loan payments. Lastly, several discounts are available to students. These include a reduction of 0.25% for current or previous Wells Fargo loan holders, a 0.25% reduction for checking account holders, a 0.25% discount for students who opt to pay through automatic payment, and a 0.50% discount for students who have a Wells Fargo PMA Package with the bank. The current interest rates for variable interest loans are between 3.40% to 8.81%. Current rates for students seeking a loan with a fixed interest rate are between 5.94% to 10.51%. The total amount of the loan, combined with other loans, may not exceed $120,000.
Wells Fargo Graduate Loans is geared towards students who are puruing a degree in one of the following fields: MBA, law, or other graduate program. These loans are specifically geared towards graduate students who would like to qualify for a loan in their own name, without a cosigner. The current interest rates for this loan are 3.94%-9.44% for a variable interest rate or 6.60% to 10.84% for a fixed interest rate. Students have up to 15 years to repay the loan, are eligible for a six month grace period on loan payments after graduation, and are eligible for various discounts on interest rates.
Wells Fargo MedCAP is a loan for students in the health-care field. Students have a grace period between 6 to 60 months before payments start. Students benefit from completive interest rates, which currently range from 3.42% to 7.79% for a variable interest rate or between 6.44% to 9.54% for a fixed interest rate. Students are eligible for a number of discounts on their interest rates. The loans will support up to $250,000 of student debt for students in eligible fields.
What are the Benefits?
- Long repayment terms of either 15 years or 20 years, which allow for lower monthly interest rates
- Low interest rates, which start at 3.74%
- A discount worth 0.25% on the interest rate to current Wells Fargo customers
- A discount worth 0.25% to students who pay their consolidated loans
- Simplifies multiple loan payments into one lower monthly payment
- Option for a variable or fixed interest rate
- Separate loan options for undergraduate and graduate students
What Do I Need to Apply?
To apply, simply complete an application online! The application will guide students through the application process, including required documentation. After the application, the student will have the option to decide whether they want a fixed or variable rate.