On March 6, Hubby and I sat down to the federal government’s loan consolidation website, Direct Loans, and filled out an application to consolidate Hubby’s student loans. On March 8 (bear with the dates, here, they’re important), we got a notice from the loan consolidation site that it had sent notifications to all of Erik’s student loan lenders regarding the consolidation. On March 10, we got a notice from Wells Fargo, one of Erik’s lenders, that they were transferring Erik’s loans to another company. This was an email notice and I thought it might be part of the loan consolidation, so we didn’t do anything with the notice at that time.
A few days ago, we got another notice, this one via snail mail, from Wells Fargo giving us more information on the loan transfer. By this time I was suspected that it had nothing to do with the consolidation because the letter didn’t mention consolidation. I figured it was time to contact Direct Loans and ask some questions. Erik had to make the call because the student loans are his.
He called yesterday, during our Snow Day, and was told that Wells Fargo never responded to their March 8 notice about the consolidation. He was also told that he had to fill out a new form listing the organization to which the loans had been transferred. This loan transfer issue would delay the consolidation. Oh, goody!
Erik then called Wells Fargo to ask what was up with the loan transfer. Why was this occurring right now, while we were in the middle of the consolidation? He was told that a whole bunch of loans (300,000) got transferred on March 15. Really. Why would they transfer Erik’s loan after having received a notice on March 8 that it was going to be consolidated? (Erik was clear but polite with the Wells Fargo representative, indicating that he didn’t trust what was going on and that he was pissed (yes! he used that word!) about the transfer and the ensuing delay in consolidation.)
Excuse us for being suspicious of Wells Fargo, but the date of the transfer coincides too neatly with the March 8 notice of consolidation. Being as how everything is done digitally, all of this should be rather instantaneous, don’t you think? The loan transfer could have been put on hold. And why didn’t Wells Fargo respond to the federal government’s notice of consolidation?
Has anyone else had this loan transfer problem with Wells Fargo or any other bank during student loan consolidation? If so, let me know in the comments. If this is more than just a coincidence, what might be in it for Wells Fargo to do a last minute transfer before consolidation?
If a Wells Fargo representative is reading this, could you please explain the process whereby your company transfers student loans? How long does it take? How often does the company transfer loans in bulk? What causes a loan to be transferred? Why does Wells Fargo transfer them rather than servicing them itself? Please make the process more transparent so we don’t get all up in your grill when stuff like this happens.