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 verified) 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, though borrower benefits may vary by lender. Federal loans have fixed interest rates, while private loans, like the Chase Select loan, typically have variable interest rates. 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 and other aid 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 be used for any 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.

How much can I borrow?

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. The minimum loan amount is $500.*

*Maximum annual loans up to cost of attendance, minus other aid, as certified by the school. Aggregate maximum loan limits may apply.

Why do schools need to certify Chase Select loans?

School financial aid officers and Chase want to 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.

Why do I need to complete a self-certification form?

Federal law requires that before a lender may disburse a private student loan to a borrower attending an institution of higher education, the lender must obtain a completed and signed self-certification form from the borrower.

Where do I get the information needed to complete the self-certification form?

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.

Who is eligible for a Chase Select loan?

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-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, usually 18 years or older (19 in Nebraska and Alabama, 21 in Mississippi and Puerto Rico)

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: You will begin making principal and interest payments no more than 60 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, if requested and approved, nine months after your graduate health professions residency is completed.
• Interest only: Interest-only payments will begin no more than 60 days after the final disbursement date. Repayment of principal and interest will begin six months after graduation or when you are no longer enrolled, or, if requested and approved, nine months after your graduate 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. Principal and interest repayment begins six months after graduation or when you are no longer enrolled in school or, if requested and approved, nine months after your graduate health professions residency is completed.
• Interest only: Repay only your interest while continuously enrolled in school or in a health professions residency. Interest-only payments will begin no more than 60 days after the final disbursement date. Repayment of principal and interest will begin six months after graduation or when you are no longer enrolled or, if requested and approved, nine months after your graduate health professions residency is completed.
• Immediate repayment of principal and interest: Repay principal and interest in a fixed monthly amount beginning no more than 60 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.

If applicable, you can electronically sign your loan application/promissory note online, 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.

*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 attendance.

Chase Select loans are subject to credit approval, receipt of a completed and signed loan application/promissory note and self-certification form, verification of application information, acceptance of loan terms, and school certification of loan amount and student's enrollment at a Chase-participating school.

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

Upon request by the student 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, as certified by the school. Aggregate maximum loan limits apply.

This information was current as of 02/02/2010 and is subject to change. Contact Chase for the most up-to-date terms.