Wells Fargo is one of the largest banks in the US, and it serves customers in over 50 countries. Wells Fargo offers a wide range of financial products and services, including consumer banking, real estate, small business financing, wealth management, and student loans.
Wells Fargo Student Loans are a great option for students in any career. It offers competitive interest rates, flexible repayment options, and no fees or penalties for early payments. Additionally, they offer a 0.50% discount on the interest rates for certain qualifiers.
What Student Loans Does Wells Fargo Provide?
Wells Fargo offers different types of loans, including private and federal loans.
- Private Loans are designed for students who want to borrow money exclusively with Wells Fargo and have lower borrowing rates than traditional student loans. Undergraduate students are eligible for this.
These are considered to be less risky because they are backed by the creditworthiness of the lender rather than Government Sponsored Entities (GSEs), such as Fannie Mae and Freddie Mac.
- Federal Loans can be used by students either through Direct Subsidized or Unsubsidized Stafford Loan programs. Students pursuing a master’s degree, MBA, law, or other professional graduate courses are eligible for this.
They have lower interest rates but come with more stringent requirements regarding eligibility and repayment timeline.
Both types of loans have their benefits and drawbacks, so it is important to do your research before making a decision.
Wells Fargo also offers Parent Plus Loans which allow parents to help their children pay for college expenses directly via a loan that they will eventually have to repay. This option has low-interest rates, flexible repayment terms, and no origination fees.
Applying For Student Loans At Wells Fargo
To apply for student loans at Well Fargo first you need to meet certain conditions. And they are
- An applicant must be enrolled at an accredited school and is pursuing a degree, certificate, or license.
- A student is eligible to apply before completing less than half the time required to complete the course.
- An applicant must be a permanent resident before applying or a U.S. citizen. An immigrant with a Green card can apply. An individual can apply if he/she is a child immigrant and has Deferred Action for Childhood Arrivals (DACA) status proof.
- An income and credit score is set by Wells Fargo that applicants need to meet to be eligible for application. If they don’t, then they can avail of a loan with a co-signer.
Once you meet all the qualifications you can apply for a loan. The process involves
- Go to the website of Wells Fargo to apply online.
- Fill up the form with relevant credentials like Social Security number, permanent address, employment, income information, the credit score (eg. FICO score), school information, cost of the total program, and how much aid you are hoping for.
- Submit all the supporting documents. Input information about whether you are a Wells Fargo customer or not to get a discount at the interest rates.
- Finally, submit.
Payment Options For Students At Wells Fargo
Wells Fargo has only one repayment method which, depending on a borrower’s preference, can be frustrating, and at the same time straightforward.
- If you are a student borrower you don’t need to start paying before the completion of your program. After that, you will have a six-month grace period, i.e., you don’t need to pay until six-month after your graduation.
- If your loan is a parent plus loan, the borrower has to start paying immediately.
- If you sign up for automatic payments during the application, you will get a lowered interest rate of 0.25%.
- An existing Wells Fargo customer can have an additional interest rate discount on private loans.
- If you have applied for loans at Wells Fargo student before, you will have a discount of 0.25% on interest rates.
Although Wells Fargo loans seem lucrative with so many discounted interest rates ( the highest discount available is 0.50%), the overall interest rate is quite high. And there are limitations on how much money you can get for a certain period. So, a loan applicant should apply for Free Application for Federal Student Aid (FAFSA) to compare all the available options, and not be dependent on only one.
Rules And Regulations Associated With Wells Fargo Student Loans
Although Wells Fargo reimburses most of the student loans in the US, its rules are too many to count and quite stringent. So be well aware of them before applying
- Wells Fargo has a limit on total education debt. For undergraduate student loans, the maximum you can avail of is $120,000.
- Under federal loan aid, a student can have $5,500 to $12,500 aid per year. If needed more, you need to take help from a private loan.
- Wells Fargo charges a late fee of $28.
- If you are not eligible due to credit scores, or steady income, you need a co-signer to be eligible for a loan from Wells Fargo. If you can maintain on-time payments for a year, you can apply for the co-signer(s) to be released.
- Wells Fargo will offer forbearance in cases where an applicant is unable to find a job, gets laid off, or faces an accidental medical situation. This short-term payment relief can be availed of for two months and by a regular payer only.
- Loan discharge will be considered only if the student dies or becomes permanently disabled. For parent plus loans, loan discharge is considered only when the parent borrows and the student dies, or if the parent becomes permanently disabled.
Any modification in Wells Fargo’s loans is case-dependent. You can call 1-800-658-3567 for further details.
Conclusion
Wells Fargo Student Loans are an important part of any student’s finances. However, there are some important things to note before signing up for a loan. Make sure to read the terms and conditions carefully so that you know what to expect before you put your trust in Wells Fargo.
FAQs
- What is the con of student loans from Wells Fargo?
Some borrowers have found it difficult to find help when they encounter problems with their loans.
- Is the interest rate for student loans high at Wells Fargo?
The current interest rates offered by Wells Fargo are 6.00% for revolvers and 7.75% for fixed-rate loans up to $30,000.
- Can I pay off student loans within 5 years?
Most people manage to pay off their loans within 10-15 years, but there are no guarantees.
- How long will it take to finish paying off my student loans?
It can take anywhere from 10 to 20 years to pay off your student loans completely, but you might be able to speed up the process.
