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Federal loans aren’t the only hardship
for college graduates. Many students
also relied on private student loans to finance their education. Typically, private lenders are stricter on
repayment terms, offering little to no grace period, no flexible repayment
options, rare deferments, and capped forbearances. And while for many student loans, these
strict standards remain in place, other private lenders are willing to make
changes to help make repaying debt more manageable in today’s economy.
For instance, Wells Fargo – a private
lender with borrowers in $11.9 billion outstanding student loan debt – recently
announced that it will lower interest rates for borrowers meeting certain requirements. Staff will review supporting documentation
proving financial hardship including paystubs, other types of income
documentation, and any other documentation showing the borrower’s full
financial picture. If you are a Wells
Fargo borrower and believe you may qualify for a lower interest rate, you can
call 1-800-378-5526 or visit this website. In addition
to lower interest rates, it has also been reported that this month (February
2015) Wells Fargo plans to extend repayment periods. These changes have the potential to save
Wells Fargo borrower’s thousands in interest payments.
Another private lender, Discover Financial Services is rumored to be
making similar changes. Other than lowering
interest rates for some of its borrowers, the hardest-hit borrowers may also be
forgiven for a portion of their outstanding debt! The company, which holds $8.3 billion in
outstanding student loan debt, is still working out the details.
If you’re a borrower with a different private
company, continue to check with your lender.
These changes mentioned above could mean less defaults and consistent
repayments for these lenders, which may interest other private lenders to make
changes as well.
Until
Next Time,
Jenny
L. Maxey
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