SAN FRANCISCO (CBS SF) – Wells Fargo is hoping to make its student loans more attractive to families.
The San Francisco-based bank is now offering fixed-rate student loans, which is a departure from the industry practice. Unlike federal student loans, the private student loans issued by banks typically come with variable interest rates that are tied to a benchmark rate.
Wells Fargo says its fixed rates will range from 7.75 percent to 14.25 percent, depending on the credit background of the applicant or co-signer, who is often a parent.
Even on the low end, however, Wells Fargo’s fixed rates are higher than the 6.8 percent fixed rate on most federal student loans. Federal loans also offer safeguards that do not come with private student loans.
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