Wachovia does financial business in a few dozen states through regional banking branches, and other home mortgage and automotive finance offices. This diverse portfolio is characteristic of Wachovia’s expansive services. The company is one of the most visible in the U.S. and specializes in personal, small business and commercial investments and wealth management, at all levels. Within such a financial model, educational loans have found a steady client base.
Wachovia provides a slew of educational loans, from K-12 to private college, continuing education to international student, and from federal undergraduate to parent and grad federal loans. The Federal Family Education Loan Program (FFELP) is administered by participating lenders on behalf of the federal government. Crucial student loans such as the Stafford and Perkins Loans are part. The Federal Consolidation Loan is part of the FFEL program. It is extended to borrowers through Wachovia’s student loan services.
Considering Consolidation
If consolidation seems like the next big fashionable financial trend, you are advised to consider it carefully before hopping on the bandwagon. Consolidation is subjective and personal. Its effects are long-term. Some factors to consider:
- What types of student loans do you have?
- Where are you in repayment? New grad? Halfway? One more year to pay?
- What are your interest rates?
- How many lenders do you use?
- Are any loans in default?
- Do you have increasing difficulty making monthly payments?
- Are there other more pressing financial responsibilities?
Once you have mulled over the answers to these you are in a good position to consult with a Wachovia loan officer. He or she will review your financial situation in light of loan load and offer consolidation loan guidance.
Wachovia’s Federal Consolidation Loan
When you have one or more FFELP loans, you may be eligible for the Wachovia Federal Consolidation Loan. The government has determined non-negotiable terms for the FFELP consolidation loans:
- Consolidation loans are subject to a fixed interest rate (as of July 1, 2006) based on the “weighted average” of your federal loans on the date of your consolidation app. Fixed rates have a cap of 8.25.
- Borrowers are not subject to credit checks or fees.
- Married couples may not jointly consolidate their federal loans anymore; also since July 1, 2006.
- Students still in school may not consolidate their federal loans.
Wachovia is free to fill in other financial terms and borrower benefits intended to compete with other lenders in the same category. You’ll find that for the most part, borrower perks are pretty similar:
- Wachovia requires a minimum of $10,000 in federal loan debt to qualify for the consolidation loan.
- Federal loans in default are not eligible for Wachovia’s program.
If you consolidate at least $15,000 in loans you may earn interest rate deductions for good borrower practices: electronic debit payments gets you a .25% reduction, and 24 consecutive on-time payments gains you another 1.00% off.
source : hxxp://www.collegescholarships.org/consolidation/wachovia.htm
