Originally Posted by FrankGator627
I currently have roughly 100k in student loan debt and I'd like to consolidate it through Wells Fargo.
According to Wells Fargo's chart, the lowest variable interest rate offered is 3.25 and the lowest fixed rate is 6.74%.
I'd like to think that being a Wells Fargo customer with a credit score above 740 would get me close to the lowest range.
My current student loans have fixed rates through Sallie Mae that range from 6.5 to 8.5 fixed.
I was looking at the prime interest rate and it said 3.25% this month, last month and even a year ago.
Would it be smart to take the variable interest rate or is that a huge gamble that isn't worth it?
Should I be able to get a better deal with my credit score?
Hopefully someone on here has some first hand knowledge and advice. Thanks.
A few questions in return:
1) How long are you locked into a given rate before it changes?
2) How fast do you plan to pay off (additional principal in your payments?)
3) Can you move it to a fixed rate without penalty?
Yes, you're likely to get closer to the lower rate if your credit score is "excellent" which is above 720. You can save a ton in interest expenses in that difference but only if you pay off quicker at the lower rate. I'd make sure I find out the cycle that the loan changes rates on and I would also be sure to find out what penalties (if any) there are for both early payoff and to see if you can change over to a fixed later down the road.