CHASE SELECT^SM PRIVATE STUDENT LOANS - FAQ

What is a Chase Select Private Student Loan?

A Chase Select loan is a credit-based private student loan that must be certified (or approved) by your school's financial aid office. It can be used for any qualified education expenses when federal loans and other financial aid aren't enough.*

What's the difference between a federal student loan and a private student loan?

Federal student loans, like Stafford and PLUS loans, usually have lower interest rates than private student loans and may include government-subsidized payments. Federal loans have standard rates and fees that don't vary by lender, though borrower benefits may. Chase provides funds for federal student loans but also offers private loans like the Chase Select loan. Private student loans are designed to supplement federal loans when federal loans aren't enough to cover the entire cost of your education. You should always exhaust your federal student loan options before applying for a private student loan.

What education expenses does a Chase Select loan cover?

Chase Select loans can pay for any education expenses approved by your school, including tuition, living expenses, books and a computer.

How much can I borrow?

The annual maximum borrowing limit can be up to the annual cost of education (minus other aid), as determined by your school's financial aid office. The minimum loan amount is $500.

*Maximum annual loans up to cost of attendance, minus other aid. Aggregate maximum of $120,000 for undergraduate students, $180,000 for graduate students and $250,000 for health education students.

Why do schools need to certify Chase Select loans?

School financial aid officers want to ensure that students are borrowing responsibly, so they determine your need for a Chase Select loan and approve (or certify) the amount you may borrow. When your loan is approved, the funds are sent directly to your school.

Who is eligible for a Chase Select loan?

To be eligible for a Chase Select Private Student Loan you must be:

• An undergraduate or graduate student 18 years of age (19 in Nebraska and Alabama, 21 in Mississippi and Puerto Rico) or older in a degree program
• Attending a participating school
• A U.S. citizen or permanent resident
• An international student with a qualified U.S. citizen or permanent resident cosigner
• Enrolled at least half time and meet satisfactory academic progress as defined by your school

Are there any origination or repayment fees for a Chase Select loan?

There are no origination or repayment fees.

When does repayment begin?

Repayment varies depending on the loan type and repayment option selected.

Repayment options for Chase Select loans

• Immediate repayment: Repayment of principal and interest begins 15 to 45 days after the final disbursement date.
• Deferred principal and interest: Principal and interest repayment begins six months after graduation or when you are no longer enrolled in school, or nine months after your health professions residency is completed.
• Interest only: Interest payments begin 15 to 45 days after the final disbursement date, and payments of principal and interest begin six months after graduation or when you are no longer enrolled, or nine months after your health professions residency is completed.

Note: Interest continues to accrue during deferment and will be added to the principal amount of your loan upon entering repayment, which may increase the total cost of your loan.

Can I defer my repayment?

Yes. You can choose from the following Chase Select Private Student Loan repayment options when you apply:

• Defer principal and interest: Make no payments while continuously enrolled in school or in a health professions residency. Repayment of principal and interest then begins 180 days after graduation or when you are no longer enrolled in school for undergraduate, graduate, and graduate health professions loans. If the student begins a medical residency during the deferment period, then the customer can request that the deferment end date be extended nine months after the residency
• Interest only: Repay only your interest while continuously enrolled in school or in a health professions residency. Repayment of interest begins 15 to 45 days after the final loan disbursement. Repayment of principal begins six months after graduation or when you are no longer enrolled in school, or nine months after a health professions residency is completed.
• Immediate repayment of principal and interest: Repay principal and interest in a fixed monthly amount beginning 15 to 45 days after the final disbursement date.

Note: Interest continues to accrue during deferment and will be added to the principal amount of your loan upon entering repayment, which can increase the total cost of your loan.

Can I change my payment due date?

Once your payment due date is established, the date cannot be changed. However, you may make a payment at any time before the due date without penalty.

Can I make more than the minimum payment each month?

You can prepay any or all of your loan at any time without penalty. Prepayment can significantly reduce the total amount of interest you'll pay over the life of your loan.

Is there a penalty for early repayment?

No. Repay your Chase Select loan at any time without a penalty or fee.

How do I apply?

Apply online or contact a Student Loan Specialist toll-free at 1-866-306-0868. Once your application is submitted, you can be conditionally approved, usually within seconds.

Then if applicable, you can electronically sign your loan documents online, download and print the documents or request that we mail them 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.

Once these documents are received, verified, and approved your school will be asked to certify the loan amount and indicate disbursement dates. Your school can receive the funds in as little as five business days (subject to the school's recommended disbursement date) from final processing if you qualify

Note: Conditional approval is subject to verification of application information, school certification and required documentation.

*Important Information: As students determine the best way to finance their education, they should consider the full range of student financial aid options available. Private loans, like the Chase Select Private Student Loan, can be used when federal loans, grants and other forms of financial aid are not sufficient to cover the full cost of education.

Chase Select loans are subject to credit approval, receipt of a completed and signed Application/Promissory Note, verification of application information and school certification of student?s enrollment at a participating school.

The 0.25% interest rate reduction is available to borrowers in repayment who elect to have their monthly payments automatically deducted from a bank account by Chase. This interest rate reduction will begin when the borrower enrolls and begins having payments automatically deducted by Chase and will remain in effect as long as automatic payments continue without interruption. The reduced interest rate will return to the non-discounted rate if automatic payments are canceled, rejected or returned for any reason or during periods of deferment or forbearance. The 0.25% interest rate reduction will not lower the monthly payment amount but will instead reduce the interest that accrues, thereby reducing the total amount repaid and the time in which the loan is repaid.

Chase services its Chase Select loans and does not sell them to another lender.

Upon request by the primary borrower, cosigners are eligible to be released from the loan after any 36 consecutive payments of principal and interest are paid on time. The borrower must meet credit criteria at the time of cosigner release. Other terms and conditions apply. Benefit programs are subject to change.

Maximum annual loans up to cost of attendance, minus other aid. Aggregate maximum of $120,000 for undergraduate students, $180,000 for graduate students and $250,000 for health education students.

This information was current as of 07/31/2009 and is subject to change. Contact Chase for the most up-to-date terms.