Wells Fargo has been providing student loans since the mid-sixties. His refinancing loan, which he calls a private consolidation loan, is best for current Wells Fargo customers who want to take advantage of the payment reduction option. Are Wells Fargo student loans good?
Wells Fargo offers private loans to undergraduate, graduate and vocational students – and their parents – and does not charge any fees. But the private student loans offered by this lender have some important disadvantages to consider. Here’s what you need to know.
Wells Fargo Student Loan Review: Should I apply?
Wells Fargo rates are average for a student lender, but if you are able to get a discount on the relationship through another Wells Fargo account, you may be able to get a 0.50% -0.75% discount. This can give the lender a competitive advantage. Wells Fargo partner relationship discounts are available for all student loan products and are offered to existing checking accounts, Wells Fargo customer portfolio and recurring borrowers through Wells Fargo.
That being said, borrowers are limited to one rebate per relationship in conjunction with autopay. For example, if you have already opened a Wells Fargo checking account and set up automatic loan repayment, you will receive a 0.25% discount on your checking account and a 0.25% discount on automatic payment, which gives you a total of 0.50% discount. You will not be entitled to further tariff concessions at this time.
Interest rates: Wells Fargo interest rates may be higher than federal student loans. For example, fixed interest rate loans for undergraduate students range from 4.53% (the lowest rate with rebates) to 10.72%, excluding rebates for customers. To qualify for loans with an interest rate at the bottom of the range, you need excellent credit. In turn, federal loans for all first-cycle students have a fixed rate of 4.53%, regardless of their creditworthiness assessment.
Loan limits: Wells Fargo limits total debt for education. The limit of undergraduate student loans combined with all other educational debts – including federal student loans – is USD 120,000. If you need to borrow more, you need to find another lender.
No alternative repayment options: while other lenders offer many payment options – such as interest-only payments or fixed payments – Wells Fargo offers only one method to pay off most student loans. You will receive a grace period of six months, and then you will start paying off your full debt and interest on your debt. Limited repayment options are a significant disadvantage compared to other lenders.
Wells Fargo is one of the largest private lenders in the United States, but he has no imagination when it comes to repayment options and his rates are average at best. However, borrowers who want to open a Wells Fargo current account or take out multiple loans through a lender may be eligible for rebates on relationships that will improve interest rates.