Wells Fargo Student Loan For Parents

The government may be taking over much of the student loan market, but there are still private options. Wells Fargo has announced an interesting student loan for parents program.

The federal government has stepped into the breach in the student loan game. This is actually a good thing in the long run as it cuts out the middle man who was making a lot of money off student loans with almost no risk. The bad news is the middle man was usually the bank. This effectively means alternatives to government loans have become a very small field these days. It will grow in the future, but that doesn't help students in need of money now.

Wells Fargo has launched an interesting program parents need to be aware of. The bank doesn't trust your kid and certainly is not going to give him or her thousands of dollars in unsecure debt to go to college. Not a chance. The bank, however, is willing to loan the money to you so that you can put a son or daughter through that special institution of higher learning.

The loan is an interesting one. It is personally secured by you and has a term of 10 to 15 years from the date of graduation. You can make principal and interest payments on the loan while your child is in college or just stick to interest only payments while they are attending toga parties…err, organic chemistry study sessions.

Is this a good deal? Well, it isn't a bad one per se. That being said, the government is jumping into the student loan game in a big way. The options available with government issued loans are growing and they are generally a better deal than private loans. The only issue is often the amount that can be borrowed. Many government loans only allow a relatively small amount to be borrowed, which often ends up making private loans a necessity. If that is the case in your situation, then the Wells Fargo Student Loan for Parents Program is worth further investigation.

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