FEDERAL STUDENT LOAN CONSOLIDATION VS. PRIVATE STUDENT LOAN CONSOLIDATION

Federal student loans and private student loans can't be consolidated together because they are two different types of loans.

The difference between federal student loans and private student loans

Federal student loans, like Stafford and PLUS loans, usually have lower interest rates than private student loans and may include government-subsidized interest payments during qualifying periods of enrollment and deferment. 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. Private loans are designed to supplement federal loans when federal loans aren't enough to cover the entire cost of your education.

Two types of consolidation loans

Private student loan consolidation from Chase:*

  • One monthly payment
  • Variable interest rate
  • Credit-based
  • Minimum consolidation requirement of $7,500 and maximum of $150,000

Federal student loan consolidation:

  • One monthly payment
  • Fixed interest rate
  • No credit check

Student Loan Specialists are available Monday - Friday, 8 AM - 8 PM Eastern to help you complete the application process and answer your questions.

 

*Important Information: Chase Private Consolidation Loans are subject to credit approval, receipt of a completed and signed application/promissory note, and verification of identity, income and other application information. Only private education loans that are in good standing and from eligible Title IV schools may be included. Federal education loans are not eligible under this program. Minimum loan amount is $7,500, with a cumulative borrowing limit of $150,000 based on credit eligibility. Other terms and conditions apply. Please contact us for details on eligibility criteria.

Chase does not sell these loans to another lender.

Student loan consolidation may extend your repayment term, increasing your overall financial obligation. However, your monthly loan payments may be reduced. You can choose to prepay principal with no prepayment penalties, which reduces the overall cost of your loan.

This information was current as of 06/02/2008.