You’ve probably heard of Wells Fargo, the bank, but did you know they also offer student loans? Wells Fargo has an interest in helping students reach their educational goals by providing these loans. A loan from the Wells Fargo Bank can fund up to 100% of your college or technical school’s expenses, and is a great resource to help cover the gap left behind when other financial aid doesn’t cover the cost of attendance.
Wells Fargo Student Loan Options Wells Fargo is a well-known banking institution, so you can rest easy knowing that you’re working with a lender you can trust. Wells Fargo’s college loan program includes perks like: • No payments as long as you are in school • Competitive interest rates • Discounts available to lower your interest rate • No early repayment or borrowing fees Parent Loans On top of funding student loans, they also offer parent loans to help students pay for college. This loan program includes features such as: • Loan funds sent directly to you, so you can decide what college expenses to put the money toward • Competitive interest rates • Discounts available to lower your interest rate • The option to either repay immediately, or make interest-only payments for up to two years Student Loan Debt Consolidation If you’re looking to consolidate or refinancing existing student loans, Wells Fargo also offers loans to help you repay federal and/or private student loans. Consolidating or refinancing existing student loans can help you: • Get a lower interest rate • Achieve a lower monthly payment • Move to a fixed or variable-rate loan • Combine existing federal and/or private student loans into one loan • Move to a different repayment term Wells Fargo is a well-established name in the banking industry, and their student loan options are no different! Check out what they offer and see if it is a good one to keep on your shortlist. Collecting resources like this one will help make your college experience easier.
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One of the problems with borrowing money is that it has to be paid back sooner or later. This may seem like an obvious statement. But many people fail to consider this concept when they are excited about going to college. They seldom think about repaying private student loans when they are first signing the paperwork. They think of the payback period as a long way in the future.
But time flies faster than people think. Before you know it, the four years are done, graduation happens, and it’s time to pay the loan back. There is often a grace period before payback begins, but this only buys a little time. Like shopping for a new car or home, salespeople sometimes use the emotional excitement of new borrowers to get them to sign an agreement before they are ready to do so. It’s important to take ones time when considering all of the options. When considering repaying private student loans, borrowers should think about how they will work the payments into their budget. This is sometimes difficult since students don’t know exactly how much money they will make after graduation. But it should inspire them to do the best they can to get enough education to be successful. As a general rule, students should never take out more money than they can afford to pay every month. But don’t just think about it in terms of a monthly payment. The long term payment should also be considered. Experts in the financial field recommend never borrowing more money than someone can comfortably pay back in about 10 years. Why Borrowers Get Into Trouble With Repaying Student Loans According to financial experts, student borrowers often get into trouble with their student loan debt because they delay paying it so long that a small amount becomes a colossal amount. Since interest accrues over time, the amount that must be paid back increases each year or during each deferment that you choose not to pay. Most federal lending institutions allow students to avoid paying for periods of one year or six months at a time. However, during this time, the interest will continue to increase unless you pay back the interest at the end or during this deferment period. If a student returns to school while they are paying back their student loan, they may be able to defer payments if they are in school for at least half time. One thing to remember is that, with Direct Subsidized federal loans, the government will pay the interest that accrues while the borrower is under an in-school deferment if the loan is a subsidized federal loan. No matter what you hear from socialist Presidential candidate hopefuls, nothing in life is free. There is even a price for freedom. It’s called “responsibility.” Anyone who tells you everything can be free is not being truthful. What they mean is that you may not have to pay for something, but the bill goes to someone else. That’s not a fair way to operate, and no university or college in the country has professors who are willing to work for free.
However, rather than demanding that college (and other services) should be free, think about how you can earn the right to have some (or all) of your college paid for. You can do it by working hard to receive a scholarship in your chosen area of study. If you do your research, you will discover that there are a number of fields that are in high demand in the coming years. If you choose one of these areas, you are more likely to be awarded scholarships. This is especially true if you choose a field that is both in high demand but is a bit less popular. For example, going into nuclear physics is a “high-demand” profession because few people can (or want) to go into it. Let’s face it, there are very few modern Albert Einsteins. But for those few that have that advanced ability or brainy left-brain talent, why not? You’ll be getting calls from NASA or being the first pilot to Neptune. Careers in High Demand But, coming back to Earth (no pun intended), let’s look at some of the fields that are in high demand that are more interesting to most young people today. Some of them are a lot of fun, too. Here’s the short list:
Remember that education expensive for a reason. It’s are supposed to prepare you for a lucrative career after graduation. That’s why college isn’t free. Start now to earn scholarships , though, and it can save you lots of money later. It pays to do your research as you are making this decision whether you are a parent or a student. It’s your life. Plan well. During the 2018-19 academic year, federal student loan interest rates were set at 5.05% for undergraduate loans. Federal Direct Parent PLUS loans were at 7.6%, and Federal Direct Graduate PLUS loans were pegged at 6.6%.
Federal student loan interest rates for the upcoming 2019-20 academic year will be decreasing to 4.53% for Federal Direct Subsidized and Unsubsidized loans for undergraduates. Federal Direct Parent PLUS loans will be set at 7.08%. Federal unsubsidized loans for graduate and professional students will decrease to 6.08% These lower interest rates are great news if you or someone who know will be attending college in the coming academic year and need to borrow loan funds. Currently, around 70% of students who are taking out student loans to attend college. Private Student Loan Interest Rates Private student loans are run by private lending institutions so they are not under these legislative actions the President is taking to give more students the ability to borrow a reasonable amount to attend college. Interest rates on private student loans can vary, depending on the lender. Other factors can also effect student loan rates including your personal credit score. There’s no need to worry, though, if you do not yet have a credit rating or if you have a credit rating that is lower than desired for a private student loan. You can get a cosigner to sign with you and it will usually help you to qualify for a private student loan. (Credit histories and scores are not a factor in determining your ability to borrow a Federal Direct Subsidized or Unsubsidized student loan). The Domino Effect Much of what happens in the political arena creates a “domino effect” in the financial world. The reduction in student loan interest rates should help students and parents to reduce the amount of interest they will pay on federal student loans. Do your own research and find out what is going on in the political world, because it may have a bigger impact on you than you might think! Private student loans offer a way for students to fill in gaps of funding when other forms of financial aid, like grants and scholarships, don’t cover the entire cost of attendance.
What are private student loans? You’re likely familiar with what student loans are but may not know what makes a private student loan different from a federal student loan. Unlike federal student loans, which are funded by the government, these types of loans are financed through private companies and organizations, such as banks, lenders, and credit unions. Read more about the differences between federal and private student loans here. The requirements for this type of loan are typically:
One of the biggest benefits of borrowing a private student loan is that they don’t have loan limits. While federal student loans have annual and lifetime limits on how much you can borrow, these loans typically allow you to borrow up to your school’s total cost of attendance. That doesn’t mean you should go crazy with it – you should only borrow as much as you need, not as much as you might qualify for – but it is a great resource to bridge the gap if your financial aid package, including federal student loans, won’t cover all of your college costs. How to Apply Once you’ve found the lender for you, it’s time to apply! Most lenders allow you to apply online and have a decision in just a few minutes. Some lenders have requirements for minimum credit scores or length of credit histories, so you may have to apply with a cosigner with a strong credit history. From there, the lender will work with your school to arrange loan amounts and disbursal. Typically, loan funds will be sent to your school to take care of tuition and other costs. Any money that’s leftover will be sent to you to cover other school-related expenses. |
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