- Multiple ways to reduce interest rate
- No fees
- Minimum loan amounts
Multiple Ways to Reduce Interest Rate
Wells Fargo offers a 0.25 percent interest rate reduction to customers who sign up for automatic loan payments. Wells Fargo also offers a number of other discounts, including a 0.25 percent rate reduction for borrowers with a prior federal or private student loan from Wells Fargo, a 0.50 percent rate reduction with Wells Fargo PMA packages, and a 0.25 percent interest rate discount for borrowers with a qualifying Wells Fargo consumer checking account.
Wells Fargo does not charge any fees to take out a student loan or consolidate existing loans. Although the bank does charge late payment fees, it does not charge any origination, application, or prepayment fees.
Minimum Loan Amounts
Currently set at $1000 for student loans and $5000 for consolidation loans, Wells Fargo's minimum loan amounts are lower than industry average. Additionally, Wells Fargo offers consolidation loans to individuals who did not graduate.
- High interest rates
- No federal loan consolidation
- Transparency issues
- Limited forbearance options
High Interest Rates
Wells Fargo's interest rates are considerably higher than many of its competitors in the student loan industry. Fixed interest rates for a regular student loan start at 6.24 percent, and that includes a 0.25 percent discount for auto payments.
No Federal Loan Consolidation
While Wells Fargo does provide private student loan consolidation, the company does not consolidate federal student loans. Many people choose consolidation as a way to group all their loans into one manageable loan. Without the option to include federal loans, some students will still have to manage multiple loans if they choose to consolidate through Wells Fargo.
While Wells Fargo does offer basic information about private student loans on its website, potential customers will need to speak with a company representative to receive all of the information needed to make an informed decision about their personal student loan situation.
Limited Forbearance Options
Many companies offer forbearance options, which means that the company will halt payments if a borrower comes upon hard economic times or loses their job. Wells Fargo does offer forbearance in certain cases, but it is not as generous as other lenders. If a borrower contacts Wells Fargo about forbearance, they must have already made 12 monthly payments on time in order to be considered for a forbearance period of two months.