Wells Fargo Private Student Loans….Predatory Lender???
How did I take out a loan for $25k and now owe them over $32k when I make my payments on time every month??? I was told by two separate institutions now that this is one of the problems Wells Fargo is facing for predatory lending (along with mortgages). Any guidance you can provide to help get my interest rate DOWN and FIXED is greatly appreciated.
Thanks!
Sorry, StarDust, but you must not understand private student loans! I haven’t seen a private loan that is fixed. The majority are variable rates with floors and no ceilings (opp. of federal loans).
Also, the difference is NOT interest. I am financially savy and I know how interest works.
For example: I borrow $25k and make a pymt of $400/month of which $325 is interest and $75 is principal. However, my loan amount should go DOWN by $75, not UP.
Other answers/suggestions/comments are requested.
It’s called INTEREST…that’s the difference between what you borrowed and what WF will make in profit over time for loaning you the money. All loans work this way. The profit they will make on your loan depends on your interest rate and how many years you will take to pay it off–just like a mortgage, car loan, or credit. You can try to negotiate a lower interest rate on your student loan but it may be difficult as student loans are SECURED debt meaning that you will never, ever be able to wiggle out from under them, even if you declared bankruptcy. You have to call and ask them to lower your interest rate. I certainly cannot understand, however, that your interest rate on a student loan wouldn’t already be a fixed rate. I’ve never heard of an adjustable rate on a student loan. That would be suspicious to me.
