SAN FRANCISCO - June 7, 2011
Wells Fargo announced today that student loan borrowers now have a fixed rate option to consider when financing their college education.
In the past, most private student loan lenders provided variable rate financing, meaning that the interest rate charged on a loan may adjust over time. Wells Fargo’s new fixed rate feature provides a new option for students and parents who want the security of knowing what their payments will be each month.
“We know that every borrower is unique and has individual needs. Knowing which option is best really depends on the customer, their situation and comfort level,” says Patrick Conner, senior vice president, Wells Fargo Education Financial Services. “Both fixed rate and variable rate options offer advantages. Variable rates are usually lower than fixed rates, however, the fixed rate option can offer protection if interest rates go up significantly in the future. This is a feature that our customers have been requesting, so we’re excited to provide them with this new alternative, allowing them to choose what best meets their borrowing needs.”
Conner added, “In addition to the fixed rate, the same benefits of Wells Fargo’s existing student loan products apply to the new fixed rate option including a quick and easy online or phone application process, no origination fees, no requirement of payments to be made while a student is in school, and many other graduation benefits for students. Our new fixed rate pricing option is simply another example of delivering on our vision to satisfy all of our customers’ financial needs and help them succeed financially.”
The new fixed rate option will be offered on four of Wells Fargo’s student loan products including Wells Fargo Collegiate Loan®, Wells Fargo Student Loan for Parents®, Wells Fargo Student Loan for Career and Community Colleges® and Wells Fargo Private Consolidation Loan®.
In addition to the new fixed rate option, Wells Fargo also is announcing this week new relationship pricing discounts for customers with a prior Wells Fargo federal or private student loan or a Wells Fargo qualified banking relationship. These customers may receive additional interest rate discounts up to 1.00% on their new student loan. Customers will automatically receive the highest qualifying relationship discount at the time of their application and be eligible for additional discounts as a graduation reward and for signing up for automatic payment withdrawal.
Students and families interested in more information should call 1-800-378-5526 between 7 a.m. and 8 p.m. CT , Monday – Friday, visit https://www.wellsfargo.com/student/ or speak with a personal banker at any Wells Fargo or Wachovia location nationwide.
Wells Fargo Education Financial Services serves more than 1.9 million student and family customers in all 50 states and has been in the student lending business for 43 years helping customers make smart borrowing decisions to finance education. Education Financial Services provides customers with financial tips and tools to keep their finances on track while in school and prepare them financially for when they finish college. Wells Fargo markets its education products to colleges and universities, directly to consumers and through Wells Fargo Bank and Wachovia Bank. As part of the organization’s commitment to education, during 2009 Wells Fargo provided $61 million in grants to 6,500 educational programs and schools, including $14.4 million in matched team member donations.
Wells Fargo & Company (NYSE: WFC) is a nationwide, diversified, community-based financial services company with $1.2 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 9,000 stores, 12,000 ATMs, the Internet (wellsfargo.com and wachovia.com), and other distribution channels across North America and internationally. With approximately 280,000 team members, Wells Fargo serves one in three households in America. Wells Fargo & Company was ranked No. 23 on Fortune’s 2011 rankings of America’s largest corporations. Wells Fargo’s vision is to satisfy all our customers’ financial needs and help them succeed financially.