Wells Fargo Student Loan Refinance Explained

Kat Tretina

Wells Fargo was one of the largest private student loan lenders in the country. As of 2020, Wells Fargo had over $10.6 billion in its student loan portfolio, making up approximately 8% of the private student loan market.

However, Wells Fargo sold its student loan business in 2020, so it no longer issues college loans. It also transferred existing loans to another company for servicing.

If you have Wells Fargo student loans and were affected by the sale, you can use student loan refinancing to save money, lower your payments, and change loan servicers. Continue reading to learn how to refinance Wells Fargo student loans.

Does Wells Fargo Refinance Student Loans?

Prior to the sale of its student loan business, Wells Fargo offered a range of student loan products, including:

  • Undergraduate loans
  • Graduate loans
  • Career training loans
  • Parent student loans
  • Medical residency and relocation loans
  • Bar exam loans

In addition to private student loans, Wells Fargo also offered student loan refinancing for both federal and private student loans. Borrowers could choose between fixed and variable-rate loans, and have five to 20 years to repay their debt.

However, Wells Fargo sold its entire student loan segment, including its refinancing loans. As a result, Wells Fargo no longer offers student loan refinancing for new or existing customers.

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What Happens to Existing Wells Fargo Student Loans?

If you took out private student loans or refinanced your debt through Wells Fargo, you may be wondering who took over Wells Fargo student loans.

After the sale of Wells Fargo’s student loan business, the company transferred existing loans to Firstmark Services, a student loan servicing company that is a division of Nelnet. You don’t get to choose a different loan servicer; Wells Fargo made an agreement with Firstmark Services, and all existing loans are automatically transferred over.

Going forward, Firstmark Services will handle:

  • Payments: From now on, you will make payments to FirstMark Services rather than Wells Fargo. If you make your payments electronically, you’ll need to make payments through Firstmark Services’ portal.
  • Account questions: If you have questions about your loans, such as how interest has accrued or how payments are applied, Firstmark Services is who you contact for information.
  • Repayment: If you’re experiencing financial difficulties and want to discuss repayment options, call Firstmark Services to discuss alternative repayment plans or forbearance options. 

You should have received a notification in the mail about the transfer and your new account information. If that hasn’t happened, contact Firstmark Services right away to avoid late fees. You can reach Firstmark Services at 833-531-1307 or by emailing [email protected].

Can Borrowers Refinance Their Loans With Another Lender?

Student loan refinancing is a popular strategy for managing education debt. To refinance your loans, you work with a lender — often a bank, credit union, or online lender — to take out a loan to pay off the current ones, effectively combining your loans into one. You can refinance both federal and private student loans, simplifying your payments. The new loan will have entirely different terms than the previous ones, so refinancing can help you lower your interest rates, reduce your payments, or adjust your repayment term.

Although Wells Fargo doesn’t offer student loan refinancing any longer, that doesn’t mean you’re stuck with your current loan terms or loan servicer. Student loan refinancing is still an option; you’ll just have to work with another lender.

There are many companies that will refinance Wells Fargo student loans and offer low interest rates to qualified borrowers.

5 Benefits of Refinancing Wells Fargo Student Loans

Why would someone refinance their Wells Fargo student loans? There are several key reasons.

1. You Can Get a New Loan Servicer

During the time Wells Fargo operated its student loan business, it didn’t have the best reputation for customer service. According to the Student Borrow Protection Center, Wells Fargo was fourth in terms of customer complaints. It received over 1,700 complaints from consumers about its loan servicing and customer service.

It also was the subject of complaints from the Consumer Financial Protection Bureau (CFPB). In 2016, the CFPB took action against Wells Fargo, alleging that the company used illegal private student loan servicing practices that made loans more expensive for borrowers. As a result, Wells Fargo paid the CFPB a $3.6 million penalty.

Why is that information important? Student loan refinancing gives you the ability to change loan servicers. When you refinance your loans, you can choose a new lender and loan servicer. If you’re unhappy with the level of service you’ve gotten from your current loan servicer, refinancing can be a smart idea.

[Tip: Make sure you find out who your loan servicer will be before refinancing your loans; it’s often different than the lender issuing the loan. Firstmark Services handles loans for a wide range of lenders beyond Wells Fargo. For example, it also handles loan servicing for Brazos, Citizens Bank, and CommonBond.]

2. You Could Save Money

Depending on when you took out your loans from Wells Fargo, you could have a high interest rate. For example, the interest rate on Wells Fargo’s fixed-rate graduate loans was as high as 9.740%. If you refinanced your loans and qualified for a lower rate, you could save thousands.

For example: if you had $25,000 in student loans at 9% interest and a 10-year repayment term, your overall repayment cost would be $38,003.

If you refinanced your Wells Fargo student loans and qualified for a 10-year loan at just 5.5% interest, your overall repayment cost would be just $32,558. Refinancing would help you save over $5,400.

  Original Wells Fargo Loan Refinanced Loan
Loan Term 10 Years 10 Years
Interest Rate 9.00% 5.5%
Monthly Payment $316.69 $271.32
Total Interest Paid $13,003 $7,558
Overall Repayment Cost $38,003 $32,558
Savings: $5,445

3. You Could Switch to a Fixed Interest Rate

Like many private lenders, Wells Fargo offered both fixed-rate and variable-rate loans. Variable-rate loans can be appealing because they usually have lower initial rates than fixed-rate loans, but they can increase over time.

For example, the initial rate for Wells Fargo’s variable-rate graduate loans ranged from 3.5% to 8.24%. However, Wells Fargo’s rate cap was 18%, meaning your rate could reach that level if the market changes.

If you’re worried about rate fluctuations — and changing monthly payments — you could refinance your loans and switch to a fixed-rate loan. By doing so, you’ll have the same interest rate for the duration of your loan, and you’ll have predictable monthly payments.

4. You Could Reduce Your Payments

By refinancing your loans, you could get a lower interest rate. Or, you can opt for a different loan term. To give themselves more breathing room in their budgets, many borrowers select longer loan terms, such as 15 to 20 years. Borrowers will pay more in overall interest charges with the longer term, but they’ll get smaller monthly payments.

For example, if you had $25,000 in loans at 9.00% interest and a 10-year term, your monthly payment would be $316.69 per month. If you refinanced and qualified for a 10-year loan at 5.5% interest, your payments would be just $271.31 — a savings of $45 per month.

You could save more money each month by extending your loan term to 20 years. If you qualified for a loan at 8.50% interest, your monthly payment would be $216.91 — a savings of about $100 per month. However, you’d pay a total of $52,070 because of the longer loan term.

  Original Wells Fargo Loan Refinanced With a 10-Year Term Refinanced With a 20-Year Term
Interest Rate 9.00% 5.5% 8.50%
Monthly Payment $316.69 $271.32 $216.91
Total Interest $13,003 $7,558 $27,070
Overall Repayment Cost $38,003 $32,558 $52,070

Use Purefy’s student loan refinancing calculator to find out how refinancing can lower your monthly payments.

[Tip: The majority of refinancing lenders don’t charge prepayment penalties. You can refinance to a longer term to lower your monthly payment amount, but make extra payments later on to reduce interest charges and pay off your loans sooner if your finances approve later on. And, you can always refinance your student loans again if your credit improves to take advantage of lower rates.]

5. You Could Release a Co-Signer From the Loan

According to Wells Fargo’s loan disclosure documents, most borrowers needed a co-signer to meet the lender’s credit and income requirements. If you had a co-signer on your loans, you know how much of a stressor it can be.

Co-signing a loan is a big responsibility. The loan shows up on their credit reports, affects their ability to qualify for other forms of credit, and the co-signer has to make payments on the loan if the primary borrower falls behind. If your co-signer plans to apply for a mortgage or car loan, your student loan debt can be a barrier.

If your financial situation has improved since you originally took out the student loans — for example, if you’ve established your credit history, boosted your credit score, and secured a good job — you could refinance your loans in your own name. The co-signer’s obligation would be removed, and the loan would show up as closed on their credit reports.

See How Much You Can Save

Student Loan Refinance Calculator

View Details


Student loan refinancing combines your current loans into a single loan with a new rate and term. See how much you can save by entering your loan information below, or by getting quotes from multiple lenders using Purefy’s rate comparison tool.

Step 1: Enter Current Loan Information

Loan Balance
Your remaining student loan debt to be repaid.
Interest Rate
The amount that the lender charges in interest, expressed as a percentage.
Current Monthly Payment
The total amount of your monthly student loan bill.
Add Multiple Loans to Calculate

Step 2: Enter New Loan Information

New Interest Rate
Your updated interest rate after refinancing student loans.
The length of time you have to repay your student loan debt in full.

Add Multiple Loans

Insert additional loan

Step 3: See How Much You Can Save


Lifetime Interest


New Monthly



Current Loan New Loan Savings
Rate 6.7% 4.2% 2.5%
Lifetime Interest $37,520 $22,210 $15,310
Monthly Payment $1,146 $1,018 $128

Like what you see? Check your actual prequalified rates from the industry’s top lenders in just 2 minutes or less.

Drawbacks to Refinancing Wells Fargo Student Loans

While it can make a lot of sense to refinance your Wells Fargo student loans, there are some drawbacks to weigh against the benefits:

1. You May Lose Special Rate Discounts

Wells Fargo is a major financial services company and bank that offers checking accounts, savings accounts, investment products, and loans. If you were an existing Wells Fargo customer when you took out your private student loans, you may have qualified for special relationship discounts that reduced your interest rate by 0.50%.

If you were eligible for that discount, you could have gotten a lower-than-average rate. By refinancing your loans, you’ll no longer qualify for that discount, so you may not get a lower rate than you have now. The good news is that if you have taken care of your credit, you may qualify for the lowest rates offered by refinance lenders.

2. You May Need a Co-Signer

Not all student loan borrowers can qualify for student loan refinancing on their loan. Typically, lenders require established credit histories, good to excellent credit scores, and they usually have a minimum income borrowers must meet.

If you don’t meet the lender’s criteria by yourself, you may qualify for a loan by adding a co-signer to your application. Your co-signer can be a parent, relative, or even a good friend — anyone with a good credit history and steady income willing to co-sign the loan. But it’s a big favor to ask, so make sure you both understand the pros and cons of co-signing a student loan refinancing application.

[Tip: Many student loan refinancing lenders offer co-signer releases. If you make your payments on time for a specific period — such as 24 to 48 months — and meet the lender’s borrower requirements, you can apply for a co-signer release. If your request is approved, your co-signer is removed from the loan and is no longer legally obligated for it.]

3. You May Not Be Eligible for a Lower Rate

One of the main benefits of student loan refinancing is the ability to get a lower interest rate. While refinancing rates are still quite low, not all borrowers will qualify for a low rate. In the following scenarios, you may only qualify for a rate that is the same or higher than you have now:

  • You have less-than-stellar credit
  • You extend your loan term
  • You already have a low interest rate
  • You don’t have an established credit history

In those situations, refinancing may not allow you to lower your interest rate. But you may be able to reduce your monthly payments and consolidate your loans into one.

[Tip: You can improve the odds of securing a better rate by adding a co-signer to your application and by selecting a shorter loan term.]

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How to Refinance Wells Fargo Student Loans in 5 Steps

After evaluating the pros and cons of refinancing, you may decide to move forward with the process. Here’s how to refinance Wells Fargo student loans in five easy steps:

1. Review Your Credit Reports

Before shopping around or requesting quotes, spend some time reviewing your credit reports and cleaning up any credit issues. You can view each of your credit reports from the three major agencies — Equifax, Experian, and TransUnion — once per year for free at

[Note: You can view your credit reports for free on a weekly basis through April 2022.]

Make sure all of the information on your credit reports is accurate. Common inaccuracies that can occur include:

  • Accounts appear that belong to someone with a similar name
  • Incorrect accounts due to identity theft
  • Closed accounts listed as open
  • Loans or credit cards listed multiple times

If you find any discrepancies, you can dispute those items with the credit bureaus online:

The credit bureaus will investigate the dispute and, if they find the information is inaccurate, they will remove those items from your credit reports. Once the items are removed, you could see an improvement in your credit score.

2. Collect Information

You can save time during the application process by gathering information and documentation. When you apply, lenders will ask for the following information:

  • Your Social Security number
  • A copy of your identification, such as a driver’s license or passport
  • Your address
  • Your employer’s contact information
  • Your income (some may request recent paystubs or W-2 forms)
  • Your current student loan balance
  • Your current student loan servicer
  • Your current loan’s account number

3. Compare Loan Options

Before submitting a full loan application, it’s always important to shop around. Rates and terms can vary by lender, so it’s in your best interest to get multiple quotes. Many lenders allow you to get rate quotes without undergoing a hard credit inquiry, so there’s no impact on your credit.

As you request quotes and compare lenders, keep the following factors in mind:

  • Loan Terms: Your loan term is how long your loan will be in repayment. With refinancing loans, terms typically range from five to 20 years. A longer term can be appealing because it will give you a lower payment, but you’ll likely get a higher interest rate and pay more in interest. In general, the lowest rates are reserved for shorter loan terms.
  • Monthly Payments: When choosing a loan, make sure you can afford the monthly payment amount. While it’s best to choose a payment that allows you to pay off the loan as quickly as possible, you don’t want to stretch your budget too thin.
  • Interest Rate Type: Refinancing loans can be fixed- or variable-rate loans. Fixed rates stay the same for the entirety of your repayment term, while variable rates can change over time — and cause your monthly payment to fluctuate.
  • Interest Rate: Your rate is the biggest factor affecting your overall repayment cost. Your rate is based on your creditworthiness, income, existing loan balance, and desired loan term. As of April 2022, rates start at 1.74% for variable-rate loans, and 2.43% for fixed-rate loans.
  • Financial Hardship Options: Not all refinancing lenders have financial hardship programs, but several do. Depending on the lender, you may be able to postpone your payments or make reduced payments for a few months to get your finances in shape.

4. Complete an Application

Once you’ve found a loan that matches your goals, you can complete the full application. You will usually have to submit your personal information, details about your income and employment, and information about your existing loans.

To process your application, lenders will prompt you to consent to a credit check. Because they’re determining whether to issue you a loan, lenders require hard credit inquiries at this stage, which can cause a modest decrease to your credit score.

5. Follow the Lender’s Instructions

After you submit your application, the lender will notify you if your application has been approved or denied. If you’re denied, they will send you the reason why, such as having insufficient credit.

If your application is approved, the lender will send you loan documents to review and sign. You must sign the loan agreement before the lender will pay off your existing loans.

It can take several weeks for the process to be completed, so continue making the required payments toward your existing loans by their due dates until the lender tells you they have been paid in full.

Refinancing Your Student Loans

Wells Fargo was one of the largest private student loan companies in the country. If you are one of the millions of people that took out Wells Fargo student loans to pay for school, you may have been shocked by the sale of its student loan businesses.

As a Wells Fargo student loan borrower, your loans were automatically transferred to Firstmark Services. However, that doesn’t mean your loans have to stay in their current state. Now that you know how to refinance Wells Fargo student loans, you can refinance your loans to transfer them to a new service, get a lower interest rate, or secure a low fixed interest rate.

To start the student loan refinancing process, you can check today’s rates through Purefy without affecting your credit score.

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ELFI Rate Disclosure

4 ELFI Rate Disclosure:

Education Loan Finance is a nationwide student loan debt consolidation and refinance program offered by Tennessee based SouthEast Bank. ELFI is designed to assist borrowers through consolidating and refinancing loans into one single loan that effectively lowers your cost of education debt and/or makes repayment very simple. Subject to credit approval. See Terms & Conditions. Interest rates current as of 01/01/2023. The interest rate and monthly payment for a variable rate loan may increase after closing, but will never exceed 9.95% APR. Interest rates may be different from the rates shown above and will be based on the term of your loan, your financial history, and other factors, including your cosigner’s (if any) financial history. For example, a 10-year loan with a fixed rate of 6% would have 120 payments of $11.00 per $1,000 borrowed. Rates are subject to change.

SoFi Rate Disclosure

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Fixed rates range from 4.49% APR to 8.99% APR with a 0.25% autopay discount. Variable rates from 5.09% APR to 8.99% APR with a 0.25% autopay discount. Unless required to be lower to comply with applicable law, Variable Interest rates on 5-, 7-, and 10-year terms are capped at 8.95% APR; 15- and 20-year terms are capped at 9.95% APR. Your actual rate will be within the range of rates listed above and will depend on the term you select, evaluation of your creditworthiness, income, presence of a co-signer and a variety of other factors. Lowest rates reserved for the most creditworthy borrowers. For the SoFi variable-rate product, the variable interest rate for a given month is derived by adding a margin to the 30-day average SOFR index, published two business days preceding such calendar month, rounded up to the nearest one hundredth of one percent (0.01% or 0.0001). APRs for variable-rate loans may increase after origination if the SOFR index increases. The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. This benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. The benefit lowers your interest rate but does not change the amount of your monthly payment. This benefit is suspended during periods of deferment and forbearance. Autopay is not required to receive a loan from SoFi.

Earnest Rate Disclosure

2 Earnest Rate Disclosure:

Actual rate and available repayment terms will vary based on your income. Fixed rates range from 4.64% APR to 9.24% APR (excludes 0.25% Auto Pay discount). Variable rates range from 4.64% APR to 9.19% APR (excludes 0.25% Auto Pay discount). Earnest variable interest rate student loan refinance loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent. The rate will not increase more than once per month. The maximum rate for your loan is 8.95% if your loan term is 10 years or less. For loan terms of more than 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95%. Please note, we are not able to offer variable rate loans in AK, IL, MN, NH, OH, TN, and TX. Our lowest rates are only available for our most credit qualified borrowers and contain our .25% auto pay discount from a checking or savings account.

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ISL Rate Disclosure

5 Iowa Student Loan Rate Disclosure:

Fixed Rate Loan Terms: 5 years/60 monthly payments, 7 years/84 monthly payments, 10 years/120 monthly payments, 15 years/180 monthly payments, or 20 years/240 monthly payments. Annual Percentage Rate [APR] is the cost of credit calculating the interest rate, loan amount, repayment term and the timing of payments. This rate is expressed as an APR. Fixed APRs range from 6.94% to 11.58% APR [low to high range with 0.25% auto-debit rate reduction]. Rates are subject to change without notice. Fixed rates will not change during the term. Since there are no fees associated with this loan offer, the APR is the same percentage as the actual interest rate of the loan including a 0.25% auto-debit rate reduction. These rates are subject to additional terms and conditions, and rates are subject to change at any time without notice. All estimates are based on information provided by you and are for informational purposes only, accuracy is not guaranteed and may not reflect actual rates or savings and do not constitute an offer of credit. Your actual rate, payment and savings may be different based on credit history, actual interest rate, loan amount, and term, including your cosigner [if applicable]. If applying with a cosigner, we use the higher credit score between the borrower and the cosigner for approval purposes. All loans are subject to credit approval.

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