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Loan transfers are common
Loan transfers are typical, as you probably already know if you’ve ever had a mortgage. The likelihood that you’ll work with the same mortgage provider for the duration of your loan is actually quite low.
Wells Fargo sold its student loan portfolio to Firstmark, a well-known player in the student loan market thanks to its parent company, Nelnet. Without your involvement, the transfer will be made if you have a student loan with Wells Fargo.
These loan transfers are problematic because you are bound by a contract with Wells Fargo. The business is required to abide by your original terms unless you and Firstmark or Nelnet agree to different terms. You will have new terms if you decide to refinance the loan with Firstmark in the future, but they will be terms you agree to abide by.
So, what should you do?
Making sure your Wells Fargo contact information is up to date is the best thing you can do while you wait for further instructions. Any letters, emails, or phone calls will probably be made using the information that Wells Fargo has on file for you. This information will likely be used by Firstmark to contact you.
Directions for everything you need to do between now and the transfer’s finalization should be sent to you. Even if you have chosen to receive all account-related communications via email, you will likely still receive these communications by postal mail.
Once your transfer is finished, go over any new paperwork that Firstmark sends you. To make sure that your original loan agreement is being adhered to, compare this to it.
Weighing your other options
Firstmark is a reputable lender with an easy-to-use online account management portal. All you have to do is ensure that autopay will function as intended if you have it set up.
Although your terms will remain the same following the transfer, you are still free to compare prices. With a rival, you might discover a lower rate and better conditions.
Luckily, it’s never been easier to research loan options. You may have already undergone the process of refinancing a federal loan if your loan is with Wells Fargo. Refinancing a private loan is a similar process.
Here are some excellent sources of private student loans to get you started
Fiona
Fiona is a great place to start if you’re just trying to get an idea of what rates are available to you. You can view the most recent offers from a few lenders by simply selecting student loan refinancing from the drop-down box. You can enter a few details to get a personalized look at rates and then contrast your options with what Wells Fargo is offering.
Your quotes from Fiona will be determined by your creditworthiness, the outstanding balance on your loan, and whether you select a fixed or variable rate. With the lender of your choice, you’ll continue the application process once you’ve found a rate and terms that work for you.
Credible
Another site that lets you compare multiple lenders is Credible. Just enter a little information about your income and education to review the offers. You have the option of selecting from up to 10 lenders, and Credible will give you $200 if you find a lower rate.
Currently, rates are starting at 3.99% APR (with AutoPay)* and 3.99% Var. APR (with AutoPay), See Terms* for private loans and starting at 4.44% APR (with AutoPay)* and 2.53% Var. APR (with AutoPay), See Terms* for refinanced loans.
CommonBond
You can refinance your student loan into one with a lower interest rate with the help of CommonBond, a private lender, for a direct loan. You have the option of a fixed-rate, variable-rate, or hybrid loan with CommonBond. With hybrid loans, you get a fixed rate for a number of years before switching to a variable rate.
Over the course of your loan, CommonBond offers forbearance of up to 24 months if you ever need a break from payments. Rates are currently 2. 59%-6. 74% for fixed, 2. 55%-6. 86% for variable, and 2. 98%-6. 57% for a hybrid loan. All rates will be discounted by 0. 25% if you set up autopay.
PenFed
Additionally, PenFed provides direct student loan refinancing with fixed rates beginning at 2 percent. 99% APR and variable rates as low as 2. 16% APR. PenFed offers refinancing options for both parent and student loans, and the rate you receive will depend on your income and credit score.
As part of your investigation, you can contact PenFed for a free quote so that you can evaluate it against other deals. To begin, you simply need to enter a few pieces of basic information about yourself, your finances, and your loan requirements.
Upstart
Upstart is a direct lender that provides a range of loan products, including debt consolidation loans and personal loans. Using Upstart, you can refinance student loans worth up to $50,000. Rates between eight and twelve percent are offered for terms of three and five years. 94%-35. 99% APR.
The speed with which the procedure moves along is one of Upstart’s best features. Although this is obviously more crucial if you’re taking out a cash-out loan, it can be comforting to know that it will only take a few days for your paperwork to be processed.
Loan transfers and your credit score
Transferring from one servicer to another won’t have a negative impact on your credit score, just like with a mortgage loan. However, until things settle, you might notice a temporary drop in your score. After that, your score should be where it was before.
To maintain a high score, it’s crucial to make sure you pay off your loans on time each month. There may be some confusion regarding where to send your payment as your loan transitions from Wells Fargo to Firstmark. Keep a close eye out for any correspondence you receive from either lender to ensure you are aware of any special instructions.
Summary
Despite Wells Fargo ceasing its student loan program, Firstmark will automatically receive your loans. If you are content with the terms of your current student loan, you shouldn’t need to switch lenders.
However, it never hurts to look into alternative options. Refinancing with a new lender might result in better terms and lower interest rates, which will reduce your monthly payments.
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Editor’s Note:
You can rely on the objectivity of our impartial, well-balanced financial advice. However, the manufacturers of some of the products mentioned in this article may pay us. Opinions are the authors alone. Except where otherwise noted below, no advertiser has reviewed, approved, or endorsed this content.
Top Student Loan Refinancing Lenders
You can rely on the objectivity of our impartial, well-balanced financial advice. However, the manufacturers of some of the products mentioned in this article may pay us. Opinions are the authors alone. Except where otherwise noted below, no advertiser has reviewed, approved, or endorsed this content.
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FAQ
Did firstmark services take over Wells Fargo student loans?
Wells Fargo sold its student loan portfolio to Firstmark, a well-known player in the student loan market thanks to its parent company, Nelnet.
Will firstmark student loans be forgiven?
All loans that Firstmark Services services are private loans and are not eligible for the federal government’s loan forgiveness program. You can refer to the studentaid. gov website for additional information.
What company took over Wells Fargo student loans?
Their loans will now be serviced by Firstmark, a division of Nelnet, the student loan servicer with its headquarters in Nebraska.
Why did Wells Fargo get rid of student loans?
The fact that student loans held by banks receive less favorable accounting treatment under the current expected credit loss standard than they did previously might have been another factor in Wells Fargo’s decision-making.