SIOUX FALLS, S.D. (KELO) — KELOLAND Investigates has learned Wells Fargo is getting out of the student loan business. The Wells Fargo student loan division is located in Sioux Falls.
After January 28, 2021, Wells Fargo will no longer accept student loan applications.
The Wells Fargo Student Loan division is located on the north side of Sioux Falls. It includes loan originators, underwriters, customer service, collections and other programs.
Just a few years ago, Wells Fargo closed it Aberdeen student loan office, and several people from that area moved to Sioux Falls to keep their jobs.
Wells Fargo employees haven’t been told if they will be offered other jobs within the bank.
One employee told us, on the condition of being anonymous, that COVID-19 is to blame because people are having difficulty paying their student loans all across the nation. Wells Fargo says it is part of a strategic review of all of its business lines.
After careful consideration, Wells Fargo has decided to exit the student lending business. We will continue to accept new applications from current customers through January 28, 2021 to help assure they do not have an interruption in financing their education, and will stop accepting new applications for student loans on that date. While this is a difficult decision, our commitment to students continues to be strong, and we will support them on their educational journeys through financial planning, guidance and educational tools found at CollegeSTEPS.com, as well as student credit cards, and deposit products. We will also continue to find impactful ways to help students such as our recently announced awarding of $1 million in grants through the Wells Fargo Student Impact Scholarship.
Wells Fargo Statement on closing student loan business