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Wells Fargo Student loans- Everything You Need To know

As much as federal student loans are the go-to option when it comes to financing your college education, not everyone qualifies. Sometimes this might not be enough. Therefore, private student loans come in handy in such a case. Such loans include Wells Fargo student loans.

These loans can be for your undergraduate, graduate studies as well as for vocations students as well as their parents.

Nevertheless, the best thing before deciding on whether to apply for Wells Fargo student loans or not is learning the pros and cons, and here is everything you need to need to know.

Pros Of Wells Fargo Student Loans

  • No fees
  • Discounts on interest rates.
  • Loan discharge.

No Fees

There are no application, origination, or late application fees. Also, you won’t be penalized in case you decide to repay your student loan early.

Discounts On Interest Rates.

You can qualify for loyalty interest rate discounts as well as automatic payment discounts.

Signing up for automatic payments will see you get a 0.25% reduction on your interest rate. If you are a current Wells Fargo customer you will get a 0.50% discount on the interest rate.

If you need both criteria it means you will get a 0.75% reduction on your interest rate. This is quite significant if you happen to have taken a huge loan.

Loan Discharge.

Parent loans will be forgiven if the student is permanently disabled. Most student loans don’t entertain discharging loans in case of permanent disability or death of the student.

However, you will be happy to know that Wells Fargo is one of the few lenders that will discharge the loan for parent-student loans in case of a disability.

Cons  Of Wells Fargo Student Loans

  • Higher interest rates compared to federal loans
  • Strict limits on the total education debt you can accrue.
  • No alternative repayment options.

Higher Interest Rates Compared To Federal loans.

You will be paying higher interest rates for the student loans you take with Wells Fargo. For the fixed-rate loans for undergraduates, the interest is between 4.53-10.72%.

In order to get lower interest rates, your credit score needs to be excellent. On the other hand, the interest rate for federal student loans remains at 4.53% no matter your credit score.

Strict Limits On The Total Education Debt You Can Accrue.

With Wells Fargo, there is a cap on the amount you can borrow for your studies. However, this limit is calculated taking into account any federal student loan you have.

If the amount you need is over what Wells Fargo has indicated you will have to go for another private lender.

No Alternative Repayment Options.

With other lenders, the payment options are many including fixed payments and interest-only payments. With Wells Fargo, the only repayment method available is making a full repayment of the principal plus the interest.

You will only have a 6-month grace period before you can start to make the repayment.

This is one of the major drawbacks of taking a student loan with Wells Fargo.

Wells Fargo Student Loans Types

Wells Fargo offers loans for graduate students, undergraduates as well as parent borrowers.

Also, students who are completing their bar exams, residency, studying at community colleges, or pursuing career training can apply for these loans.

Undergraduate Wells Fargo Student loans

Federal loans allow undergraduate students to borrow between $5,500-$12,500 in student loans depending on their dependency status.

Board costs, accommodation, and tuition fees can be more than that depending on where you are studying. A private student loan can cover the remaining amount.

You can borrow up to the total cost of attendance. However, they will consider the financial aid you have already received before determining the amount they will give you.

However, the amount you borrow plus the federal student loans you have taken shouldn’t be more than $120,000.

Graduate Student Loans

Graduate school is important if you want to advance your career. However, in most cases, this might cost you more than what you spent to get your bachelor’s degree.

If you want to get your law degree, MBA, a master’s degree, or any other professional credential, a loan for Wells Fargo will be more cost-effective compared to federal student loans.

In case you have federal loans the interest rate can be between 6.08% and 7.08%.

However, if your credit is excellent you can get a  wells Fargo private student loan at a fixed interest rate of 5.64%.

The cap for graduate student loans from Wells Fargo is still $120,000 but if you are pursuing a business or law degree you can have a lifetime limit of %180,000.

Medical School Loans

Graduate students in health-related programs like dental, nursing, or other medical fields have special MedCap Medical School loans.

You will have a 6-month grace period before you start repaying the loans, but osteopathic and allopathic medical students can get a 3-year grace period.

This gives them a head start in their careers before they have to start making the payments.

Bar Exam Loans

Any law school student who is preparing to take the bar exam can get a Wells Fargo bar exam loan to cater to the registration fees, living expenses, and test preparation materials.

You can borrow up to $12,000 and you won’t have to start repaying the loans until six months after you have left law schools.

The bar exam is demanding and so is the preparation. It is also expensive which is why you need to have a settled mind before taking it.

Even if you don’t have a job, with a Wells Fargo bar exam loan you can cater to your living exams, register for the bar, and get enough material to prepare for it to increase your chances of passing.

Loan Eligibility

There are some conditions you have to meet in order to qualify for a Wells Fargo private student loan and they include:

  • If you are enrolled less than half-time you can still qualify for the loan.
  • You have to be enrolled as a student at an eligible college pursuing a certificate or a degree at the end, or licensure.
  • If you are enrolled less than half-time you can still qualify for the loan.
  • You must be a citizen of the US, a permanent resident talent, a permanent resident, or Deferred Action for Childhood Arrivals individual with a current US address.
  • You must meet credit score and income requirements but if not you may need a co-signer in order to qualify for a loan

Can I get a loan from Wells Fargo?

Yes, but you must be the primary account holder of an eligible Wells Fargo consumer account with a FICO Score available, and enrolled in Wells Fargo Online Eligible Wells Fargo consumer accounts include deposit, loan, and credit accounts. Other consumer accounts may also be eligible.

Is it hard to get a personal loan from Wells Fargo?

Most sources say that you need a score of 660 or higher to get an unsecured loan. However, it is possible to get an unsecured loan if you have a lower score with Wells fargo. However this mostly applies to the people who use the Wells Fargo savings account as savings.

What type of loans does Wells Fargo offer?

Wells Fargo offers both secured and unsecured loans for every phase of life.

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