What Wells Fargo exiting the student loans business means for you
In January 2021, Wells Fargo stopped accepting applications for new student loans. The company will still offer credit cards, home equity loans, bank accounts and all of the other financial products it is known for, but private student loans will no longer be available.
Not only that, but current Wells Fargo student loan customers will soon find their loans handled by a different service provider. If you are a current Wells Fargo customer who has relied on the bank to borrow money for school, keep reading to learn what you can expect moving forward.
Wells Fargo student loans overview
Before this change was announced, Wells Fargo offered private student loans and private consolidation loans. Loan terms and rates varied based on the amount borrowed, consumer credit scores and other eligibility criteria. Generally speaking, however, Wells Fargo was known for offering student loans with competitive rates and loan terms — especially for those with good or excellent credit.
According to the bank, it is currently “selling and transferring” its student loans. This means that current Wells Fargo private student loans will be transitioned to a new loan holder. This new servicer will handle all payments once the transition is completed.
Who services my Wells Fargo student loan now?
Since this announcement is recent, it’s possible that you haven’t received any updated information on your Wells Fargo student loan account. However, Wells Fargo has made it clear that it will deliver more information directly to its current student loan customers as details become available. You should expect communication from the lender before your loan officially transfers.
What should I do with my Wells Fargo student loan?
Keep in mind that your Wells Fargo student loans will maintain the same terms once they are transitioned to Firstmark as the loan servicer. This means that if you’re happy with your current student loan interest rates and loan terms, you don’t have to do anything other than begin making payments to Firstmark once your loans have been fully transitioned.
Refinancing Wells Fargo student loans
If you’re not thrilled about having to change loan servicers or you feel that you might be eligible for a new student loan with better rates or terms, you can refinance your loans and move to a new lender of your choosing. Private student loan rates are incredibly competitive right now, and you may be able to shorten (or lengthen) your new loan term to get a monthly payment that works better for your goals.
New private Wells Fargo student loans
If you recently applied or co-signed for a new Wells Fargo loan and your loan application is in process, you can call the company at 1-800-378-5526 to inquire about the status. You can also check your application status or sign loan documents on the Wells Fargo website.
What if I missed the deadline for Wells Fargo applications?
The best student loan companies offer incredibly low interest rates and fair loan terms that can help you secure a payment you can afford while saving money on interest along the way. You may even be able to qualify for private student loans with bad credit.
If you want to compare multiple student loan interest rates across multiple issuers, you may want to start your search with a company like Credible. This loan platform lets you enter your information once, then see multiple loan offers from different lenders. You may also choose to do your own research and get quotes from top-rated companies like Sallie Mae, SoFi and Discover.
Where can I go for help with my Wells Fargo student loan?
Borrowers who are worried about this announcement may want to sit tight for a while. Wells Fargo notes that the transition is going to take some time and that all you have to do is continue making payments on your loans as you normally would.
However, the company does have a hotline set up for customers who have questions or concerns. Current Wells Fargo customers can reach Wells Fargo at 1-800-658-3567 Monday through Friday from 7 a.m. to 8 p.m. CT.
Article courtesy of Bankrate written by Holly Johnson.