Wells Fargo To Issue Fixed Rate Student Loans

Figuring out one’s student loan interest rate can always be a challenge. Well, no more. Wells Fargo is going to issue fixed rate student loans that will lock in the rates. 

The student loan industry has always been one that has been aggravating. For instance, you have to actually pay back the loans which is about as aggravating as it gets! Ah, but let’s talk seriously.

Perhaps the most aggravating thing about student loans is the interest rate flexibility. Coming out of school, money can be tight. This means a monthly budget needs to be established. Being disciplined at a relatively young age can be a real challenge, but it can be done. Nothing blows it up more, however, than when rates go up and your monthly student loan payment increases. It used to drive me nuts! 

The government take over of student loans put a lot of pressure on private banks to come up with ways to attract business. Wells Fargo is taking a step most would have expected years ago, but became a must with the reorganization – they’ve created the fixed rate loan and this means cost certainty for students. 

Wells Fargo may be providing people with cost certainty, but nobody is arguing it is going to be cheap. The bank will be issuing loans with interest rates of between 7.75 and 14.25 percent. The exact figure will be determined by looking at the borrower or co-signers credit. These rates are obviously much higher than with government issued loans, but they are also set in stone. When interest rates go up and up as they inevitably must, the rates you have now will be set in stone. While others are stressing out, you will have the luxury of knowing where you stand. 

Let’s be absolutely clear about something. You should always look to the government first for student loans. They are much cheaper. If you must get private loans, however, Wells Fargo’s new fixed rate loans are definitely worth a look.