Some Stafford changes for 2008
As always, just as you’re finishing up finals and easing into your winter break, somebody has to come along and remind you about your upcoming responsibilities: It’s almost time to file your Free Application for Federal Student Aid (FAFSA)!
Yes, applying for financial aid for next year is one thing you really should do before heading back to class for next semester. However, I do have some good news to share with you about Federal Stafford Loans for the 2008-2009 school year:
Lower interest rate: If you’re an undergraduate student and you take out a subsidized Federal Stafford Loan (where the government pays your interest while you’re in school, grace and deferment) for 2008-2009, your interest rate on new loans will be lower—down to a fixed rate of 6.00% beginning July 1, 2008. The interest rate on unsubsidized Federal Stafford Loans (and subsidized Federal Stafford Loans for graduate students) remains fixed at 6.80%.
Lower origination fee: For everyone who takes out a Federal Stafford Loan (either subsidized or unsubsidized) the origination fee will be lowered next year. Beginning July 1, 2008, the origination fee for new Federal Stafford Loans will be 1% (down from 1.5% currently).
If you have any questions while working on your financial aid application for next year, be sure to check in with your school’s financial aid office, or post a question here. We’re happy to help.
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Comments (7)
Found in College, Federal loans, Financial aid, Financial education, Preparing, Wells Fargo Bank
Comments
Thanks for the information! I found it very helpful.
Posted by: Kirk | December 21, 2007 08:28 AM
I have one question I applied for a student loan with Wells Fargo a stafford which is completly subsized by the government when will I know if it is approved. Also, is there any way to check on the status of this loan? Thanks
Posted by: Stuart | December 31, 2007 09:27 AM
I know my school is low balling me on my loan award amounts. I know people who make more then me and are getting more loan money. I can't find anyone to tell me how much I should be getting from them. Can anyone help. Heres some info...They only let me put me and my 2 year old daughter as family size...I make amount 17,000 a year, and I take 12 or more hours. They give me about $2,000 a semester and our schools maximum is the standard $8500.00
Posted by: Jason | January 1, 2008 10:21 AM
In the search of approved WF material to read while I'm at work in one of our many call centers, I stumbled across your blog. It got me thinking about my student loans.
At this point I have been out of school for about two years and I'm paying off a chunk of change with Sallie May. I'm wondering if there is anyway to get that somehow switched to a WF Education loan and take advantage of some Team Member discounts.
Posted by: Matt | January 1, 2008 07:40 PM
Hi Matt - good question! The only way to get your loans over to Wells Fargo is to consolidate them with Wells Fargo. Assuming you do the rest of your banking with Wells Fargo, it's convenient to have all your accounts in the same place.
However, your first consideration should be whether consolidation is a good financial choice for you. When you consolidate, you may lose eligibility for some deferments if you ever need one down the road. And if your repayment term is extended, you will most likely end up paying more in interest over the life of the loan. Team member benefits are only available on the Wells Fargo Private ConsolidationSM Loan, not on the Federal Consolidation Loan. So if you have private loans, you can look into private consolidation with Wells Fargo, but be certain that it's a solid choice for you, outside of the team member benefit consideration.
Talk with a student loan representative from Wells Fargo to determine whether a Federal Consolidation Loan or our private consolidation loan is right for you. They can be reached at 1-800-658-3567. Best of luck with whatever you decide.
Posted by: Caroline Hanson | January 8, 2008 05:07 AM
Hi Jason - if you are a second-year undergraduate independent student, then $8,500 is the maximum Federal Stafford Loan you can borrow for the year. The maximum subsidized loan amount is $4,500 per year, the rest must be unsubsidized. However, it's ultimately up to your school how much they will certify you to borrow.
Schools use factors other than family size and income to determine the amount you're eligible to borrow, so I suggest that you sit down with a financial aid officer at your school to discuss your situation more in-depth. They will be able to let you know what factors played into their decision, and will hopefully be able to resolve the issue. Let us know how it goes.
Posted by: Caroline Hanson | January 8, 2008 05:09 AM
Hi Stuart - thanks for your question. Your best bet is to call and speak directly with a Wells Fargo student loan representative, who can tell you the status of your application. Call 1-800-658-3567 and select option 2. Representatives are available to help you out from 8:00 a.m. to 10:00 p.m. Central Time, Monday - Friday, and 8:00 a.m. to noon on Saturdays.
Posted by: Caroline Hanson | January 8, 2008 07:13 AM