Student Loan debt can amount to a significant portion of your income, and many Americans find it difficult to make just the minimum monthly payments. If you are one of the people struggling to repay multiple student loans, you may want to consider consolidating them through a reputable lender who may offer a lower interest rate.
Wells Fargo is an established financial institution which offers student loan consolidation for loans up to $120,000.
Benefits of a Wells Fargo Student Loan Consolidation
If you have multiple student loan payments, a consolidation will allow you to combine your payments into one, which is much more convenient. It is important to consider the interest rate of the loan consolidation to determine if it will cost you more money in the long term. If the interest rate is higher than what you are currently being charged, you will pay more back over time. A Wells Fargo consolidation loan may have a variable or fixed interest rate, so you will need to pay attention to the specific details of your loan.
Wells Fargo does offer lower interest rates if you use an automatic payment plan or if you have other accounts or use other Wells Fargo services.
Which Loans Can I Consolidate?
Wells Fargo will only allow you to consolidate private student loans, so you won’t be able to include your federal student loans. You will have to consider what type of loans you have, the loan amount and the interest rate to determine if consolidation of your private student loans will be beneficial.
Fees, Charges and Terms
If you choose to consolidate your student loans with Wells Fargo, you will not be charged a fee other than the interest rate, and there is no penalty for repaying your loan before the term ends. If you have a variable interest rate, it will range between 4.49% and 9.49%, and a fixed interest rate will be between 6.24% and 10.99%.
You can choose either a fixed or variable annual percentage rate (APR) when you consolidate your loans with Wells Fargo. A fixed rate remains the same over the loan period, and a variable rate will change over time. At some points, it may be lower than the fixed rate and at other points it may be higher.
If you have multiple private student loans and you are considering a consolidation, Wells Fargo is a reputable lender with competitive rates, so you may want to look into their consolidation options.