Student Loan Interest Rates

Wells Fargo offers competitive student loan rates with fixed and variable interest rate options.  While variable rates usually start lower than fixed rates, a fixed-rate option can offer protection if interest rates go up over time.

Fixed interest rates:

  • Remain the same over the life of the loan, and ensure your monthly payments remain stable over time.
  • Allow you to better predict how much total interest you will pay on your student loan.
  • If interest rates fall after locking in a fixed rate, your monthly payments may be higher than with a variable rate for a certain period of time.

Variable interest rates:

  • Generally provide a lower initial interest rate on student loans than fixed rates.
  • May rise or fall as the Prime rate adjusts over time, which affects your monthly payment amount.
  • Your payments may vary on a monthly basis, which can lead to payments being higher than a fixed rate.

How variable loan rates work

A Wells Fargo variable interest rate student loan is based on two factors:  the Index (Prime rate) which can go up or down depending on market conditions, and the margin, which does not change.  If rates were to increase at a steady pace, you will never exceed our maximum interest rate cap.

Interest rate = Prime rate + Margin

Interest rate
Prime rate

The percentage that lenders charge customers for borrowing money.

Can change when Prime rate changes.

A standard interest rate index many lenders use as the basis for determining the rate charged on a loan.
A fixed percentage determined by the lender, based upon your credit and other factors when you apply for a loan.

How rates impact monthly payments

The table shows sample annual percentage rates and monthly payments, based on a $10,000 loan with a 15-year repayment term.

Annual Percentage Rate
Monthly payment