Student Loan News: Wells Fargo Kills Fees; Ed Sec Meets With Servicers

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Welcome to Student Loan News, a weekly summary of developments and events affecting college debt in the U.S. Join us each Friday for a look at goings-on that could impact your own student loan situation.

Wells Fargo reportedly dropping student loan late fees

Wells Fargo will no longer charge late fees on its student loans, though interest will still accrue if no payment is made, according to a CNN report carried by various news media Wednesday. This also applies to Wells Fargo consolidation loans that group together debt from other lenders or servicers, the reports said.

After a series of criticisms over its fees for student products, Wells Fargo began dialing back such charges, including those for its Campus Card accounts marketed to college students.

How it affects YOU: According to our own Student Loan Hero review of loan options from Wells Fargo, the lender is pretty good in terms of limiting fees that borrowers face. Though, the competitiveness of its interest rates varies, depending on your credit.

That said, no single financial institution will offer the best deal to all student borrowers. If you have private student loans from Wells Fargo or another bank, and you have a solid credit background (or a cosigner with good credit), you might get a better interest rate or other perks by refinancing. Likewise, if you’ve hit your limit for federal student loans and need to take a private student loan to cover the gap, be sure to shop around for your most suitable offer.

Also in the news …

  • New data is now available on the government’s College Scorecard site, showing debt levels, earnings and other statistics broken down by field of study, the Department of Education announced Wednesday.
  • Education Secretary Betsy DeVos was meeting with student loan servicing companies to gauge “quality assurance and performance,” Politico reported. The department said this would be the first of regular quarterly meetings on the subject.
  • Republican Sen. Lamar Alexander, who heads the chamber’s education committee, voiced support for a Democratic-sponsored bill to close the 90/10 loophole that had some fraudulent or predatory schools targeting veterans, Politico said in a separate report.
  • A Georgetown University study found that while Harvard and Stanford provide great returns on the money you’ll spend to go there, the St. Louis College of Pharmacy is an even better investment.

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