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