Wells Fargo & Co. (NYSE: WFC) Reduces Student Loan Rates

Wells Fargo & Co. (NYSE: WFC) has reduced the variable interest rate that student loan borrowers are being charged through its “Wells Fargo Collegiate” and “Wells Fargo Student Loan for Parents” programs. The San Francisco-based based bank is now offering student loans with interest rates as low as 3.50% for qualifying borrowers.

Wells Fargo & Co. (NYSE: WFC) private student loan customers can reduce their interest rate during their repayment period by setting up automatic ETF payments. Wells Fargo & Co. (NYSE: WFC) Collegiate student loan borrowers can reduce their interest rates by 0.50% by participating in the Wells Fargo Student Graduation Benefit Program. If a student qualifies for both programs and is in the lowest interest rate tier, their effective interest rate could be as low as 2.75% based on the current primate rate.

According to data from College Board, tuition rates have increased at an average interest rate of 4.9% past inflation between the 1999-2000 school year and 2009-2010 school years, faster than in the previous two decades .

“In today’s economy, families are having a harder time affording college,” said Kirk Bare, head of Wells Fargo Education Financial Services. “The cost of education continues to increase faster than inflation. The recession has reduced personal income, home equity, and investments. We are reaffirming our commitment to our customers and to the student lending industry by lowering our rates at a time when our customers need it most. We want to be the financial services provider of choice for our customers for every stage of their life.”

Wells Fargo & Co. (NYSE: WFC) Loan and Student Loan for Parents do not charge customers application, origination or repayment fees. Customers an also defer payments until graduation.

“Wells Fargo offers private student loans to qualified customers who need to fill the gap between the amount of federal financing for which they qualify and the overall cost of their education,” Bare added. “We strongly advise students and families who borrow private student loans to exhaust all grants, scholarships, and federal loan eligibility first.”