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Make Affordable Federal Education Loans

Wells Fargo Education Financial Services is offering new money-saving repayment benefits on Federal Stafford Loans, Federal PLUS Loans (Parent Loans for Undergraduate Students) and Federal Consolidation Loans, making education loans more affordable for students and their families.

Wells Fargo's new repayment benefit program allows borrowers to reduce the loan's principal balance by 4.6 percent for Stafford loans and 3.6 percent for PLUS loans (for new loans disbursed on or after May 1, 2004) and 2.6 percent for Consolidation loans (for new loans disbursed on or after March 1, 2004) after they make the first 36 monthly payments on time. Borrowers also can reduce the already-low interest rate on these federal loans by 0.25 percent by making automatic payments from a checking or savings account.

"With our enhanced borrower benefit program, federal educations loans are even more affordable," said Jon Veenis, president of Wells Fargo Education Financial Services. "For example, on a $20,000 PLUS loan paid over 10 years, parent borrowers can save more than $1,000 in repayment benefits."

In addition, Wells Fargo is offering a new option for parents to postpone PLUS loan payments while their student is enrolled in school at least half time. Parents also can choose to make interest-only payments while their student is in school and begin principal and interest payments after their student graduates.

Wells Fargo Education Financial Services recently received the Exceptional Performer designation from the U.S. Department of Education and is one of the nation's leading student loan providers. With more than 30 years' experience in education financing, Wells Fargo Education Financial Services originates more than $2.9 billion annually in federal and alternative student loans. Wells Fargo Education Financial Services is a division of Wells Fargo Bank, N.A.

For more information on affordable federal education loans, or other financial matters visit the links below.

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