Nov 24 2017

Student Loan Interest Rates – Wells Fargo #defaulted #student #loans

#student loan interest rate

Student Loan Interest Rates

Wells Fargo offers competitive student loan rates with fixed and variable interest rate options.  While variable student loan interest 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 provides a lower initial 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

Written by admin

Leave a Reply

Your email address will not be published. Required fields are marked *