Being one of the biggest and oldest banks in the country, it’s no wonder Wells Fargo student loans are some of the most popular and sought-after. All kinds of students have asked and continue to ask about its student loans interest rates and student loan payments.
But, has the institution lived up to its name in 2018? What is its edge over other private lenders? Here’s our review of Wells Fargo Student Loans.
How Do Wells Fargo Student Loans Work?
In this article:
Since we’re talking about student loans, the most important thing to consider are the rates. Each loan-giving body has different APRs or Annual Percentage Rates, which are used to compute the interest of your loan.
If opting for federal student loans is not your thing, then this may work for you. Wells Fargo offers a 6.17 to 12.99 percent fixed rate and a variable of 4.10 to 11.24 percent APR.
Compared to other private student loans, these rates are relatively high. For instance, Citizens Bank has a fixed APR of 3.74 to 11.75 percent.
The benefit of Wells Fargo private loans compared to private lenders is its 0.50 percent interest rate reduction.
(Did you know? One of the few ways to relieve the high payments and interest rates of a private student loan is Private Student Loan Consolidation. But just like anything in life, there are peaks and pits to everything. Avoid the pits by learning the 6 Things To Know Before A Private Student Loan Consolidation. Click here to get the free guide.)
Repayment and Limits
With Wells Fargo student loans repayment plans, $120,000 is the loan limit for undergraduates (usually enrolled in four-year degree programs). If you’re a graduate student, you can borrow up to $180,000, while $250,000 is the loan limit for students studying medicine.
These figures sound high, but it’s worth noting that Wells Fargo caps the loan limit at a much lower value if you’ve taken out other federal loans.
In relation to its loan limits, Wells Fargo allows you to pay your loans, with the APR given above, in a fixed repayment period of 15 years. This is rigid compared to other private student loans offering a flexible repayment period of 7 to 20 years.
While Wells Fargo student loans consider economic hardship as a case for forbearance, its forbearance period is relatively short – 6 months. To some, this may seem like enough time to get back on their feet, but for others, 6 months isn’t enough.
It usually takes a year for one to find another good job and start earning enough money to be stable enough to pick up his or her finances.
But in special cases, one may opt for aid that’s unique to Wells Fargo: its Loan Modification program. Your rates and repayment period will be adjusted according to your agreement with their representative. It’s best to contact them directly about this matter.
A lot of private student loans today offer loan consolidation of both private and federal loans. Perhaps this is what’s missing in Wells Fargo student loans. It doesn’t offer loan consolidation.
(Did you know? Consolidation and Refinancing are some of the best ways to tackle Private Student Loan Debt since they open up better repayment options borrowers can take advantage of. Learn how you can use a Private Student Loan Consolidation to get better options with the 6 Things To Consider Before Consolidation Private Student Loans. Get the details and free download here.)
With the alarming rise of student debt today, a loan consolidation plan is a must for private student loans. This will be very helpful to students who are trying to pay off their debts while trying to earn money at the same time.
Other Fees and Services
Wells Fargo student loans don’t have any application or origination fees. Unlike federal student loans lenders, they have several branches in various campuses and are very easy to reach.
They service their own loans, so they know first-hand the kind of help you need. You can also opt for monthly payments and the other financial aid they provide.
We’ll give Wells Fargo 3 out 5 stars. It still caters to the needs of many students at present but not quite as well as other private student loan options available today.
Watch this video from Wells Fargo for more information on Wells Fargo student loans:Subscribe to US Student Loan Center
Wells Fargo student loans are just one of the many private loan options out there. We’ve laid out the benefits and disadvantages of this particular loan program for you and hope it helps.
It bears repeating that only you can decide what kind of student loan you need. While some may find Wells Fargo’s specifications unmanageable, others may find it just right.
This review is a starting point in choosing the student loan that will help you achieve your goals.
What do you think about this review? Let us know in the comments below!
Want to know more about private student loans and other Wells Fargo offers? Here’s What You Should Know About Private Student Loans.
Editor’s Note: This post was originally published in June 2017 and has been updated for quality and relevancy.
Feature Image via DW labs Incorporated / Shutterstock.com