One major problem for college graduates is that they have multiple different packs of loans to pay. The risks that come with having many separate student loans is it’s difficult to juggle their repayment i.e. it’s hard to follow the amount, repayment dates as well as their interest rates.
One way a student can conquer his dilemma is through consolidating the multiple student loans into one easily manageable loan. Consolidation of student loans means that multiple student loans are combined into one bigger loan provided by one lender. This subsequent loan is used to pay any withstanding original loan balance.
How to get consolidation assistance
Borrowers significantly reduce the effort as well as time in managing their student loans when they opt to consolidate their student loans. Borrowers just make a single payment which is easy to manage and budget rather than having to make numerous different repayments every month.
Life becomes easy for students after consolidating their loans and also there are few cases of loan defaults.
Students should first determine whether the student consolidation loan interest rate is suitable for them in the long run before making any choice.
Borrowers who opt to stretch their monthly payments so that they can pay reduced rates end up paying far higher interests in the long run. It’s however a better option since it involves manageable payments and simple budgets.
Wells Fargo private student loan consolidation makes your payment for student loan simple and low with a new loan that comes at a favorable interest rate.
You can lower your consolidation loan costs with an interest rate discount of 0.25% for a limited time.
- Assist you to consolidate many loans that come with numerous payments into a single loan having one payment per month
- You can choose competitive options of fixed or variable interest rate
- You can minimize your cost of loan with the offered discount on interest rates
- You have the capacity to reduce your monthly payment by being eligible to access low interest rates or extension of the repayment term of your loan
When you extend the term to repay your loan, it may result to increased interest rates that you’ll pay throughout the life of your loan.
Loan repayment for Wells Fargo loan consolidation starts immediately and you’re given a repayment term of up to 20 years. Consolidation is mostly suggested for customers who have completed school.
There are no fees charged on application and there is no penalty for early repayment of the loan.
Competitive annual percentage rate (APR)
- The annual percentage rate for variable interest rates varies between 3.75% having discount to 8.75% with no discount.
- The annual percentage rate for fixed interest rates varies from 7.24% having discount to 12.29% without discount.
Ways on how you can lower your interest rate
There are two great ways that you can use to lower your interest rate;
- Customer Discount – This has 0.25% rate reduction for an earlier Wells Fargo private student loan or any other eligible account
- Automatic Payment Discount – It includes 0.25% rate reduction when you enroll in automatic payments
Merging your private loans
You can combine up to $100,000 for a Wells Fargo student loan. Its lifetime limit together with all other related debt for education sums up to $250,000.
A student having limited income, little or no credit history should seek assistance from a consigner so that they can for a private student loan and can as well get it at low interest rates.
A cosigner refers to a person responsible for loan repayment of the student borrower. They share the responsibility of the loan and don’t necessarily have to be a relative. They must be adults who meet eligibility requirements.
Wells Fargo Private Consolidation Loan monthly payment amount
|Balance due at repayment
|Term (years remaining on loan)
More information at https://www.wellsfargo.com
What to include in a consolidation loan
You can add any debt for a private student loan from Wells Fargo or any other lender excluding the following;
- Federal loans
- Any other education loan debt e.g. credit card or line of credit even if it was used to cater for education expenses.
Requirements for applying for a consolidation loan
- For every loan you’re required to submit the following;
- The name and address of the lender
- Your account number
- Any outstanding balance that you have
- Current monthly payment
- Current rate i.e. fixed or variable
When you apply for a private student consolidation loan, it normally takes 45 – 60 days to be fully processed.
Financial aid for graduates – here!