Wells Fargo offers its student loan borrowers private student loan forgiveness if the student borrower:
- dies or
- becomes totally and permanently disabled
Also, unlike some other private student loan lenders, Wells Fargo offers private loan forgiveness to parents who borrowed student loans on their child's behalf if the child dies or becomes totally and permanently disabled.
Federal student loans are forgiven at the borrower's death. The federal government also will forgive a borrower's Parent Plus Loans upon their child's death.
Does Wells Fargo offer student loan forgiveness to cosigners?
Wells Fargo offers loan forgiveness to cosigners.
If you're a parent who cosigned a student loan for your child, you can be released from the student loan debt.
The reverse is not true.
If your co-signer dies, you, as the primary borrower, remain responsible for the loan balance.
If you can't afford the student loan payments, look into refinancing the loans with another private lender offering a lower interest rate and payment amount.
If refinancing isn't a repayment option, then consider:
- requesting a Private Student Loan Modification
- negotiating a student loan settlement or
- filing for student loan bankruptcy.
Wells Fargo student loan settlements typically are for about 40-70% of the loan balance.
In the wake of the coronavirus pandemic, Wells Fargo has stopped refinancing federal loans. Borrowers can still apply for a consolidation loan through the Department of Education.
Wells Fargo is, however, still allowing borrowers to refinance private student loans.
Can I get a cosigner release for a Wells Fargo private student loan?
Unlike Discover, Wells Fargo will allow a cosigner to be released from a private student loan.
You're eligible for a cosigner release if the first student loan payment was made in full and within 30 days of the due date and:
- the primary borrower is a U.S. Citizen, U.S. national, or a permanent resident
- 24 consecutive monthly payments were made in full and on time (Sallie Mae offers a release after 12 monthly payments)
- you did not receive a forbearance or deferment during those 24 months and
- the borrower has a strong credit history, credit score, and is working and has acceptable income
Once those requirements are met, the borrower will submit the cosigner release loan application with a consent form signed by you to Wells Fargo for processing.
You can get the application by calling Wells Fargo at 1-800-658-3567.
If you didn't make the first payment in full and on-time, then you have to make 48 consecutive monthly payments in full and on time before you can apply to be released from as a cosigner from the student debt.