Is Wells Fargo a good student loan?

Wells Fargo's Student loan question wondering?

• When I apply for student loans do I get the money in my personal account or is it a direct deposit to the university? And what do I need to have to qualify for a student loan? What are the best types of student loans to get? Thanks!!

• Answer:

  1. Wells Fargo is a private lender. The best student loan option is a Federally subsidized student loan, which will have a lower interest rate than a private student loan. You can learn more about private student loans, which, among other things, start accruing interest soon after the loan agreement is signed (compared to a Federal student loan that will not accrue interest until after the student leaves college/univ.), I recommend you read the information in this FinAid.org article: * http://www.finaid.org/loans/privatestudentloans.phtml You can also read more about private student loans by clicking on the links on this web page from the well-respected publication US News and World Report: * http://www.usnews.com/education/best-colleges/paying-for-college/student-loan/articles/2010/08/17/private-student-loans-frequently-asked-questions 2. I do hope you have already completed and submitted the FAFSA (Free Application for Federal Student Aid - http://www.fafsa.ed.gov ) or will do so soon. That is the application that is needed to be considered to be offered a Federal student loan. You can learn more about Federal student loans here: * http://studentaid.ed.gov/PORTALSWebApp/students/english/funding.jsp#02 Click on the links for each kind of Federal loan to read about them. 3. I also recommend you read the student loan advice given in this US News and World Report article: * http://www.usnews.com/education/best-colleges/paying-for-college/articles/2011/09/20/think-hard-before-borrowing-for-college Bottom line: If at all possible, avoid taking out any private student loans to help cover your undergraduate expenses. Also, student financial aid experts recommend that undergraduate college/univ. students do not take out more than $5,000 in student loan funds for each full school year so they will not end up graduating with tremendous student debt which they may find difficult to repay. Generally student loan funds are sent to your school, which places the funds in a student account for you. First the school will deduct the amount of your tuition and course fees from the loan funds. Many schools now also charge a small fee for handling the loan funds for their students. If there is money left over from the loan funds, the school may allow the student to draw on it to pay for books and class supplies. After the deadline for adding and withdrawing from classes, if there is money left over the school usually releases any remaining loan funds to the student. This practice varies, so you should ask about this at the Financial Aid Office of your school Librarians--Ask Us, We Answer! Find your local Public Library at: http://www.publiclibraries.com/ Find your College/University Library at: http://lists.webjunction.org/libweb/Academic_main.html Best wishes