Everything to Know About Wells Fargo Student Loan Financing

In a December 2020 press release, Wells Fargo & Company announced its decision to sell its private student loan business to Firstmark Services. The banking giant notified its customers of its exit plans in September 2020 and continued to accept new applications for Wells Fargo student loans until the 28th of January 2021.

This article explains what anyone who took Wells Fargo’s student loans before the sale should know. It also gives anyone who plans to finance a college education through Wells Fargo a list of alternatives.

About Firstmark Services (Your New Loan Servicer)

Firstmark Services LLC has been operating since 1997. It specializes in software and systems designed for loan management and servicing and is an operational division of Nelnet, Inc., a publicly traded corporation. 

When Wells Fargo transferred its student loans to the company in mid-2021, it took over a portfolio worth over $10 billion.

Past and Present Wells Fargo Loans for Students: What You Must Know

To be clear, you can’t get private student loans through this bank anymore. This fact applies whether you’re an existing Wells Fargo customer or new to its services. 

If you financed your college tuition through the bank before Wells Fargo exited the industry, here’s what you must know:

1. Borrowers Had No Input In the Matter

Borrowers had no say in the transfer to Firstmark. When the transaction occurred, only the U.S. government and the parties involved could reverse or prevent the sale. 

Therefore, once notified that Firstmark is taking over their loan, borrowers must direct their next monthly payment to the company, regardless of personal opinions.

2. Your Loan Terms and Monthly Payments Won’t Change

The Wells Fargo/Firstmark transaction won’t affect your loan terms. You’ll pay the same interest rate, remain on your original repayment plan, and fulfill all obligations in your contract as you did before Wells Fargo sold. Only the entity you send your monthly payments to will change (i.e., Firstmark).

3. Firstmark Will Be In Touch (If It Hasn’t Contacted You Already)

Expect a notification from Firstmark informing you of the change of loan holder. Alternatively, contact the company via telephone at 888-538-7378. Its business hours are 7.00 am to 8.00 pm Eastern Time (Monday to Friday). 

4. You Don’t Have to Continue With Firstmark

If you’re unhappy with the switch from Wells Fargo to Firstmark, you don’t have to continue with the latter company. You can explore other lenders and use student loan refinancing to transfer your debt from Firstmark to one of them. 

Student Loan Professor has experts that can guide you through the refinancing process. Consider seeking their counsel for hitch-free refinancing.

Alternatives to Wells Fargo Private Student Loans

If you didn’t apply for Wells Fargo’s private student loans before the 2021 deadline, there are still options for private funding or refinancing to meet your education financing needs.

Private Lenders for Student Loans

While Wells Fargo no longer offers private student loans, many reputable private lenders provide competitive options for financing your education. Some notable private lenders include:

• Citizens Bank: Known for flexible terms, competitive rates, and multi-year approval for undergraduate loans.
• SoFi (Social Finance): Offers low fixed and variable rates and benefits such as career counseling and unemployment protection.
• Sallie Mae: Provides a range of private student loans, including options for parents and graduate students, with benefits like no origination fees.
• Discover Student Loans: Features no fees, flexible repayment options, and cashback rewards for good academic performance.

For residents of South Carolina, organizations like South Carolina Student Loan (SCStudentLoan.org) assist in securing grants and scholarships. Refer to our guide for more details on state-specific aid.

Student Loan Refinancing Options

If you’re unhappy with your current loan servicer, refinancing may be a viable solution. Refinancing allows you to transfer your existing student debt to another private lender, potentially lowering your interest rate or monthly payments.

Here are some top refinancing options:

• Earnest: Offers customizable repayment plans with no fees.
• CommonBond: Combines competitive rates with a social mission, contributing to education programs globally.
• LendKey: Provides a network of credit unions and community banks for personalized refinancing options.

Visit our in-depth refinancing guide [insert link] for more information or consult one of our experts for tailored advice.

Federal Student Loans

The U.S. government provides federal student aid to undergraduate and graduate students through the Department of Education.

Federal loans can be an excellent alternative to borrowing from private lenders like Wells Fargo for several reasons. 

For one, they include fixed rate, and you don’t need to have excellent credit (or a cosigner who does) to obtain them. Also, they offer flexible repayment options like income-driven repayment plans.

Finally, the federal government can forgive them, as the Biden administration recently did for 55,000 public service workers in late 2024.

Depending on whether you’re an undergraduate, graduate student, or parent, you can get subsidized or unsubsidized federal direct loans.

Your loan options are as follows:

• Direct Subsidized: The government subsidizes these loans, meaning interest won’t accrue until you leave school. Read our in-depth guide to learn how subsidized loans work.
• Direct Unsubsidized: Unlike subsidized loans, interest accrues on your student loan during college. The silver lining is unsubsidized loans offer a lower interest rate and flexible repayment.
• Direct Parent Plus: Parent student loans allow your parents to borrow money on your behalf. They’re viable if you’ve borrowed the maximum amount available in direct subsidized loans.
• Direct Graduate Plus: Graduate students can use these loans to supplement when unsubsidized loan amounts are insufficient.

Visit the Federal Student Aid website and fill out the form to begin the application process.

Private Lenders Like Wells Fargo

Alternatively, you can get a student loan from a private lender like Wells Fargo. Notable lenders include Citizens Bank, Sallie Mae, and SoFi (a.k.a, Social Finance). Some organizations, such as South Carolina Student Loan, assist in securing grants and scholarships. Refer to our guide to SCStudentLoan.org if you’re a resident.

Get Expert Advice On Your Federal and Private Student Loan Options

Wells Fargo’s sale of its student loan business to Firstmark Services in 2021 means your debt now belongs to the latter company, and you can’t get student loans from the former. If you’d like advice on refinancing with a new lender or want to explore government-sanctioned options for other financial aid, our experts are here to help.

Consult an expert today to learn how to reduce the total cost of your private loans and reach your financial goals.