Federal student loans are available to students and parents to help pay for college.
They have fixed interest rates and may include federally subsidized
interest. Additionally, they have many flexible repayment and deferment options.
Federal Stafford, PLUS and consolidation loans are now available solely from the U.S. Department of Education's
Direct Loan program. Private student loans, like the Chase Select loan, are designed
to supplement federal loans when federal loans and other aid aren't enough to cover
the entire cost of your education. Students are strongly encouraged to exhaust federal
loans, scholarships, grants and other financial aid before applying for a private student loan.
In order to apply for federal student aid, you must first fill out the Free Application
for Federal Student Aid (FAFSA). After your FAFSA is processed, your school will
review the results and tell you the amount and types of financial aid you are eligible
to receive.
Types of federal student loans include:
- Federal Direct Subsidized Stafford Loans
- Federal Direct Unsubsidized Stafford Loans
- Federal Direct PLUS loans (for parents and graduate or professional students)
- Federal Direct Consolidation Loans
- Federal Perkins Loans
For more information about federal student loans:
- Contact your school's financial aid office
- Visit www.studentaid.ed.gov
 ,the U.S. Department
of Education's website about funding education beyond high school
- Fill out the FAFSA at www.fafsa.ed.gov
Chase does not offer federal student loans.
A Chase Select loan is a credit-based private student loan that must be certified
by your school's financial aid office. Students are strongly encouraged to exhaust
federal loans, scholarships, grants and other financial aid before applying for a private student
loan.*
Chase Select Private Student Loans are available exclusively
to Chase customers. Chase requires that either the student borrower
or the cosigner be a Chase customer with a qualifying account or loan relationship. Qualifying Chase accounts and loan relationships include:
- Savings, checking or other deposit account
- Existing loan account (including a Chase student loan)
- Credit card account
To be eligible for a Chase Select Private Student Loan you must meet our credit criteria and be:
- Enrolled in a degree or certificate program at a Chase Select-participating school
- A U.S. citizen or permanent resident, or an international student with a valid Social Security Number applying with a qualified U.S. citizen or permanent resident cosigner
- The legal age of majority for the state of residence at the time of application
Chase Select loans can be used for qualified education expenses up to the cost of
attendance minus other aid, as certified by your school, including tuition, living
expenses, books and a computer.
The annual maximum borrowing limit can be up to the annual cost of attendance (minus
other aid), as determined by your school's financial aid office. Aggregate maximum student
loan limits are $120,000 for undergraduates; $180,000 for graduate students; and
$250,000 for health professions students. Maximum loan limits are based on your school's certification
and your aggregate student loan debt.
The minimum loan amount that can be requested under this loan program must be greater
than $1,000, except if the student applicant's permanent residence is in one of
the following states, then the minimum loan amounts for this loan program are as
follows: Colorado, greater than $3,000; Indiana, greater than $3,600; Oklahoma,
greater than $4,700; South Carolina, greater than $3,500; and Wisconsin, greater
than $2,000.
School financial aid officers and Chase want to help ensure that students are borrowing
responsibly. Schools will certify your need for a Chase Select loan and verify the
amount you are eligible to borrow. Chase requests that your school certify your
Chase Select loan to confirm that you are currently enrolled and that the loan does
not exceed the difference between the cost of attendance and other aid.
Federal law requires that before a lender may disburse a private student loan, the
lender must obtain a completed and signed self-certification form from the student
borrower.
You can obtain the information for the self-certification form from your school's
financial aid office. You may also find this information in the financial aid award
letter that you received from your school.
There are no origination fees.
There are three repayment options for Chase Select loans:
- Immediate repayment: You will begin making principal and interest
payments no more than 60 days after the final disbursement date of your loan.
- Interest Only: Interest-only payments will begin no more than 60
days after the final disbursement date. Repayment of principal and interest will
begin at the earlier of six months after graduation or when you are no longer enrolled
in school, or 5 ½ years after the first disbursement date. If you begin a medical
residency or internship during the interest-only period, then subject to your written
request and to our approval, we may extend the interest-only end date for a period
of up to six months after the date your medical residency or internship ends, but
in no case will it be more than 8 ½ years after the first disbursement date.
- Deferred principal and interest: Principal and interest repayment
will begin at the earlier of six months after graduation or when you are no longer
enrolled in school, or 5 ½ years after the first disbursement date. If you begin
a medical residency or internship during the deferment period, then subject to your
written request and to our approval, we may extend the deferment end date for a
period of up to six months after the date your medical residency or internship ends,
but in no case will it be more than 8 ½ years after the first disbursement date.
Note: If you choose to defer payments, interest continues to accrue
during in-school deferment and will be added to the principal amount of your loan
upon entering repayment, which will increase the total cost of the loan.
You can repay all or part of your loan at any time without penalty. Prepayment may
significantly reduce the total amount of interest you'll pay over the life of your
loan.
If a loan is cosigned, both the student borrower and the cosigner are equally responsible for repayment of the loan. However, if certain eligibility criteria are met, Chase will release the cosigner from a loan, thus ending the cosigner's financial obligation on the loan. A cosigner release may be requested by the student borrower (Chase will provide a Request for Cosigner Release form to be completed by the student borrower upon request) For student loans disbursed within the current academic year, the student borrower may request that the cosigner be released, after a minimum of 36 consecutive monthly on-time principal and interest payments have been made. At the time of the request, the student borrower must meet Chase's minimum credit criteria and other established cosigner release eligibility requirements in order to establish the capacity to repay the loan on his or her own. The student borrower becomes solely responsible for repayment of the loan after the cosigner is released.
No. Repay your Chase Select loan at any time without a penalty or fee.
Apply online or contact a Chase representative toll-free at
1-800-487-4404.
If eligible, you can electronically sign your loan application/promissory note online. You can also
download and print it or request that we mail it to you. If you choose to sign paper
documents, you will need to complete and return the forms, along with the required
verification materials, by fax or mail.
We will also send you a letter or e-mail indicating what additional information,
if any, is needed to evaluate your loan application.
APR stands for Annual Percentage Rate. APR is the cost of credit expressed as an annual percentage. APR takes into account not only interest charges, but also certain fees and other charges, if any, associated with the loan. Since the Chase Select loan is a variable rate loan, the APR will also change as your interest rate changes. If you choose to defer your student loan payments while in school, the APR on your loan may actually be lower than the interest rate. This is because APR calculations assume that interest is capitalized, which, in the case of the Chase Select loan, does not occur until your loan enters repayment status.
Capitalized interest is the interest that accrues on your loan during periods of
deferment or forbearance and that is added to your loan's principal balance at repayment.
Capitalization occurs at the end of the deferment or forbearance period when the
interest accumulated on your loan over the deferment or forbearance period is added
to the principal amount of the loan. Once interest is capitalized, it becomes part
of the principal balance and interest begins to accrue on the new principal amount.
The most typical situation resulting in capitalization of interest is where the
student elects to fully defer his or her payments while in school. For students
that choose the Interest-Only repayment option, then only the unpaid interest that
accrues between the first and final loan disbursements will be capitalized and added
to the outstanding principal balance of the loan on the date of the final disbursement
date. Additionally, once the loan goes into repayment, any unpaid accumulated interest
at the end of any forbearance period or subsequent deferment period will also be
capitalized and added to the outstanding principal balance of your loan.
Interest that is added to your outstanding principal balance is called "capitalized"
interest. Capitalized interest will be treated as principal, and interest will then
accrue on the new principal balance.
Simple interest is a method of calculating interest due on a loan that allows interest to be charged daily based on the outstanding principal balance of the loan. The Chase Select loan is a simple interest loan. This means that the amount of interest you will actually owe may vary depending upon when you make your monthly payments. The earlier you make your payments before their due date, the less interest you will owe. On the other hand, the later you make your payments after they are due, the more interest you will owe.
A deferment allows a borrower to temporarily suspend payments. Interest continues
to accrue on the student loans during periods of deferment and unpaid interest that
accrues during the deferment period will be added to the principal balance of the
loan at the end of the deferment period. (See "What is capitalized interest?" above.)
The student borrower and cosigner (if applicable) are equally responsible for the interest
that accrues during the deferment period.
The most typical form of deferment is where the student borrower elects to defer
making their payments while enrolled in school. There are also other forms of deferment,
for more specific situations, such as military deferment for borrowers on active
military duty.
There are no deferment options for borrowers who select the immediate repayment
option. However, borrowers who select the immediate repayment option can request to change their repayment option after their loan is fully disbursed.
For Chase Select Loan undergraduate and graduate borrowers who choose to defer principal
and interest payments, or who choose to make interest-only payments: principal and
interest repayment begins after the deferment period ends, which is the earlier
of (1) six months after either the student borrower graduates or is no longer enrolled
in school, or (2) 5½ years after the first disbursement date.
Graduate borrowers who begin a medical residency or internship during their deferment
period may request (subject to Chase's approval) that their deferment end date on
their graduate loans be extended as follows: six months after the residency or internship
ends or the student borrower ceases to be enrolled in the internship or residency
program, but not to exceed 8½ years after the first disbursement.
Forbearance allows the student borrower to temporarily postpone his or her payments
as a result of a temporary hardship that arises.
Hardship forbearance is granted typically in increments of one or two months. Hardship forbearance can
be requested by borrowers who are experiencing extenuating circumstances that temporarily
preclude them from making payments. Borrowers requesting forbearance must meet eligibility requirements. The borrower and cosigner are
equally responsible for interest that accrues during the forbearance period. Any
unpaid interest that accrues during the forbearance period will be added to the
principal balance at the end of the forbearance period and the loan term may be
extended by the number of forbearance months. (See "What is capitalized interest?"
above.)
In order to qualify for a hardship forbearance, in addition to establishing a temporary hardship, certain additional eligibility criteria must be met, including, among others, the following:
- The loan cannot be 60 or more days past due.
- Nine regular monthly payments must have been made.
- Twelve payments must have been made since the end of any prior hardship forbearance.
- The lifetime maximum of 12 hardship forbearance/grace extension months cannot have already been exhausted.
- The borrower and/or cosigner cannot be in an active bankruptcy status.
|
