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Monday, August 2nd
Wells Fargo is a well-established name in the financial industry, from checking accounts to mortgages and investments. They offer a variety of student loans, including Wells Fargo Collegiate and Wells Fargo Graduate programs.
Student loan criteria
In order to be eligible for a Wells Fargo student loan, you must meet the following criteria:
Check current rates
Before starting an application, we recommend that you click on the green "Check Rates" arrow in the middle of the main student loans page. You'll enter your school's information (state and name), along with your field of study. You'll then be taken to a page that will show you all of the current interest rate ranges for your loan, whether that's a fixed-rate loan for graduate school or a variable-rate loan for your four-year degree.
During the actual application process, you'll need to provide your school's information, your Social Security number, your permanent (home) address, employment and income information for you (and your cosigner, if you have one), the costs of attendance, and, finally, the amount of financial assistance you expect to receive from any source.
Interest rate reductions
Wells Fargo offers several ways to reduce your interest rates. First, if you set up your monthly payments to be automatically withdrawn (known as ACH), you may qualify for a discount of 0.25% off your interest rate. Also, they offer three "relationship interest rate discounts" if you or your cosigner have an established history with Wells Fargo before you complete the loan process: 0.25% discount if you have a prior federal or private student loan through Wells Fargo, 0.25% discount if you have a qualifying consumer checking account with Wells Fargo, or a 0.50% discount for a Wells Fargo PMA Package (a combination of a specific number and type of accounts, including Premier Checking, investments, and so on). Finally, if you have newly-established (or poor) credit, having a cosigner with good credit can both help you qualify for a student loan and get a lower interest rate.
Wells Fargo also saves you money with no application or origination fees, and no prepayment penalties if you pay off your loan early.
No repayments for 6 months
With Wells Fargo student loans, you will not be required to make any repayments until 6 months after you graduate or leave school. Be aware that there's a maximum in-school period: you have four years from your first loan disbursement if you attended a 2-year school, five years if your loan covers graduate school, and seven years from your first disbursement if you attended a 4-year school. In other words, Wells Fargo doesn't penalize you for being on "the 5-year-plan" (taking longer than the traditional 2- or 4-year period expected with an Associate or Bachelor degree), but you can't claim to still be in school for an unlimited period of time without beginning the process of repayment.
Unfortunately, we found hundreds of reviews from students with loans through Wells Fargo that expressed deep dissatisfaction with the service they received once the loan was disbursed. Some of the problems we frequently found were errors on Wells Fargo's side that cost borrowers money and hurt their credit score, unhelpful representatives, and lack of flexibility when the unexpected occurs (such as death or disability interfering with borrowers' ability to repay). Across multiple websites, it was difficult to find reviews from students who were happy with the service they received from Wells Fargo over the course of their student loans, even when those individuals had been paying their loans faithfully over several years.
While Wells Fargo has the advantage of being a major player in the financial industry, it seems that they don't apply that experience and skill to their servicing of student loans. You may be more satisfied with the service you receive from another lender in our review.
As the costs of higher education rise, so does the need for student loans. While some individuals are eligible for federal loans, those loans don't always cover the full cost of getting an education - not just tuition and room/board, but books, laptops, transportation and other expenses. And, people who are ineligible for federal loans don't necessarily have overflowing savings accounts to match their college or university costs.
Private student loans are the way that many students close that gap. On average, students have nearly $40,000 in student loan debt at the time of graduation; without those funds, their aspirations of being a teacher, engineer, or social worker may have been put on hold indefinitely.
Fortunately, there are many lenders who want to make it as affordable and simple as possible to complete undergraduate and graduate-level studies. Some represent well-known, established financial institutions, while others work directly with networks of community banks to get much-needed cash into the hands of eager learners.
Comparing offers from lenders can be as easy as going online; in a matter of minutes and mouse clicks, you can see a variety of interest rates, repayment terms, and other details of each program for which you are eligible. This saves you significant time compared with going hat in hand to your local bank or other lending institution, hoping that they will say yes to your loan application.
When deciding on which lender to use for your student loan, you should consider the following factors:
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