Wells Fargo is one of the largest Banks in the USA and a leader in the private student lending space. As higher education costs continue to rise, student loan borrowing has become a fact of life for millions of college going students. If you are thinking to take a student loan from Wells Fargo, then you must read the pros and cons of the private lender given below.
Before we get into Wells Fargo private student loans on off ranks hear a quick note about boring private student loans. you should always Max out your Federal student aid first, which includes federal student loans, grants, and work-study programs before turning to private students not. Here is everything you need to know about Federal students Loan.
Wells Fargo Private students Loan
Founded 160 years ago, the Wells Fargo bank offers a variety of financial products including banking account, mortgages and students loan. It has granted almost loans worth $12 billion.
It has 8 private student loan programs. 5 of those programs aim to help students pay for educational expenses, two program help cover post-graduation expenses for health professionals or lawyers, and the final program allows borrowers to consolidate the student loans.
Pros of borrowing from Wells Fargo Private students Loan
Wells Fargo private student loan has a loan interest rate bracket compared to most other banks in the US. They don’t even charge news origination fees. As of January 2018, fixed APRs range from 6.49% to 12.99% and average rate ranges from 6-10%.
The rate you ultimately qualify for depends on your creditworthiness as a borrower. Better is your credit lesser will be the interest rate.
Two Potential Discounts
As with its private student loans, Wells Fargo of borrowers to potential interest rate discounts. You can get a 0.25% rate discount for signing up on auto-pay. If you or your co-signer are an existing Wells Fargo student loan customer, you get an additional 0.25% interest rate reduction on the consolidation loan.
Deferments & Forbearance
Wells Fargo offers a variety of loan deferment, forbearance, and hardship option, that can help keep you from defaulting on your loan. This means you can postpone payments for up to 3 years if you volunteer with a public service organization.
Death & Disable charges
If the primary borrower dies or becomes permanently and totally disabled, Wells Fargo will forgive the remaining loan balance. This can help for course I know who would otherwise have to repay the debt.
Cons of borrowing from Wells Fargo Private students loan
Maximum borrowing limit
Wells Fargo private student loans have a maximum borrowing limit of $25000 for parents. Additionally, you can’t have more than $100,000 in combination with other educational related depth. This limit is less, compared to a parent plus loan which lets you borrow up to the cost of attendance at your Child School.
Although Wells Fargo has an easy application process, its history of lending raises some red flags. There are many cases when Wells Fargo has charged in legal fees to the borrowers. It also misleads them about payment information and failed to update information to the credit bureaus.
The verdict of Wells Fargo Private students loan
Wells Fargo offers a high, potential interest rate reduction. But a very short forbearance period and a 15 years long term make set a mediocre choice for a private loan.
if you are looking for a private student loan to pay for college you might be wondering about Wells Fargo. However, there are many other options which will offer you a better deferment and forbearance option. Hence, consider comparing other student loans as well before going for Wells Fargo private student loan. You can choose from this list of best private loan providers.