Public and private student loans have been on the scene for decades; helping countless college-aged borrowers earn academic degrees
Programs for Continuing Your Education
A recent shift in federal policy changes the way some loans are administered, including perennial Stafford Loans. The stalwart program is now integrated within the William D. Ford Federal Direct Loan Program, a far-reaching Department of Education financial aid effort that includes Subsidized, PLUS and Consolidation Loans, among others.
In the past, loans were issued by private lenders, on behalf of federal granting agencies. The Health Care and Education Affordibility Reconciliation Act of 2010 contains provisions revising the student loan process. Today, the government serves as its own lender, eliminating the bank or credit union that traditionally got involved. Cutting out the middle-man saves on administration costs, and streamlines the federal educational loan system.
Private lenders, like Wells Fargo, still play a role in student financial aid, but they no longer act as place-holders for federal student appropriations. Instead, private student loans are issued like other loans often requiring comprehensive credit checks for student applicants. Parents seek educational loans too, sometimes for K-12 education. Private lenders are the only source of aid for private primary and secondary school financing.
Wells Fargo offers a one-stop-shop for student loans. Students and parents choose from a number of educational loan services and products, each designed to tackle specific educational funding needs. Flexible borrowing options support education at all levels, and include assistance saving for college and managing student loan repayment.
Products and Services
The Wells Fargo Student Loan Center incorporates useful tools that help borrowers compare private Wells Fargo student loans to Federal Loans. Three areas of lending provide undergraduate, graduate and consolidation options for student borrowers and their parentspetitive interest rates, simplified application procedures and repayment plans that defer until borrowers leave school are each attractive features for cash-starved college students.
- Wells Fargo Collegiate Loans are for student enrolled at 4-year colleges and universitiespetitive interest rates are in the 3-6% range, depending on whether fixed or variable rate options are selected. Loans may not exceed the cost of education, minus any other financial aid that is received concurrently. Repayment is not required during a six-month grace period following school.
- Wells Fargo Student Loans for Career and Community Colleges serve students pursuing associate’s and other degrees at eligible institutions of higher education. maximum eligibility awards as much as $20,000 worth of educational assistance annually, depending on each applicants academic major. interest rates are in the 4-7% range depending on the influence of market forces. Students begin repayment following a six-month grace period that begins when borrowers leave school.
Graduate students advancing through specialized degrees also qualify for Wells Fargo student loans. These Wells Fargo private graduate school loans are designated for specialized areas of graduate study:
- Graduate Loans are for applicants who seek funding without the assistance of a cosignerpetitive fixed interest rates under 7% are common.
- Graduate Collegiate Loans are secured with cosigners, to add credibility and keep interest rates low for borrowers.
- Law School/Bar Exam Loans are reserved for Bar Examination candidates seeking funding for exam fees and related costs.
- Health Care/Medical Students benefit from Wells Fargo MedCap Loans that provide funding for health care specialists. No annual maximum is in place, but borrowers may not exceed a total of $250,000 in lifetime loan disbursal. Eligible disciplines include:
- Occupational Therapy
Wells Fargo Private Consolidation Loans provide an alternative for students who have more than one outstanding education loan. Private consolidation offers the same benefits as government-sponsored debt consolidation initiatives, including; lower monthly payments, favorable interest rates and a single monthly statement for multiple consolidated loans.
Because consolidation repayment begins immediately, it is recommended for individuals who are done with school. From $5000-$100,000 worth of student debt may be consolidated into a single Wells Fargo loan. Existing Wells Fargo customers enjoy additional loan discounts, and consolidation loan interest rates are lowered a full quarter-point for student who enroll in automatic electronic payment from Wells Fargo checking and savings accounts.