FREQUENTLY ASKED QUESTIONS

A Federal Consolidation Loan is part of the family of loans available under the Federal Family Education Loan (FFEL) program as authorized by the Federal government. With a Federal Consolidation Loan, you can consolidate all or some of your outstanding education loans into a single new loan, even if your loans are currently held by more than one lender and are of different loan types. With a consolidation loan, you take advantage of these significant benefits:

By extending your loan term or selecting one of our graduated repayment plans, you can lower your monthly payments by as much as 45%. Your loan counselor will help you to understand your options. In addition, there is NO PENALTY for early repayment of your loan. However, please note: by extending your payments, your overall financial obligation may increase because you will be making payments (principal plus interest) for a longer period of time. If you do not choose to repay your loan in full prior to the end of the extended period, the total cost of your loan will be greater than what you would have paid if you had not extended the term.

The fixed interest rate for your Chase Loan Consolidation Program loan is based on the weighted average of the interest rates of the loans you consolidate (rounded up to the nearest 1/8th percent) or 8.25% which ever is lower. For individuals with variable rate Stafford loans disbursed between 7/1/98 and 6/30/06, and who are now in the repayment period, this interest rate would be 7.25%. By taking out a consolidation loan now, you can LOCK IN this 7.25% rate, thereby eliminating the worry that variable rate Stafford loan rates will go up in the future.

If you consolidate while you are in your grace period we will hold your application until close to the time of your grace end date. This way, we preserve as much of your existing grace period as possible. If you would like to go into repayment immediately rather than wait until the end of your grace period, simply tell your loan counselor.

It takes 30-60 days for us to receive payoff information from your lenders, review your application for completeness and disburse your new consolidation loan. If, during the process, you would like an update on your loan's status, you may call your loan counselor.

Our trained professionals have experience in setting up consolidation loans so you can begin saving quickly. All you need to do is contact us by calling our convenient toll-free number or by applying online and we will get you started! We'll review your information, process your application and work with your current lenders to ensure that all your loan information is up to date and accurate. You finish the process with a single loan; a low, fixed rate; a significantly lower loan payment; and the peace of mind that you have improved your financial situation now, when you need it most. It's that simple.

You are eligible for our Federal Consolidation Loan so long as, at the time of funding, you: (1) are in your loan grace period or have entered repayment on each loan chosen for consolidation; and (2) consolidate eligible federal student loan debt meeting Chase' minimum balance requirement of $20,000. Other terms and conditions apply. Please contact us for details on eligibility criteria.

Eligible Federal student loans include:

NOTE: You may consolidate an existing consolidation loan only if you are combining that loan with at least one other eligible loan.

There are no fees or credit checks when you apply to consolidate your loans with us.

You can find lender names and addresses in your repayment information for each of your loans. Or, simply call us at 1-866-449-6093 and we can help you access all your student loans.

No. There is no credit check to obtain a Federal consolidation loan with us.

Yes. It is extremely important to continue to make all of your regular payments on the loans that you have selected to consolidate until you receive your new Loan Consolidation Disclosure Statement and Repayment Schedule from your new loan servicer.

Yes. Within 180 days of the funding date for your consolidation loan, you may add additional eligible loans without completing a new application. After 180 days, you will need to reconsolidate your loans. To add a loan, contact your new loan servicer. If you have questions or concerns not answered here, Contact Us!

You may choose one of several repayment options for your Federal consolidation loan. The repayment term can have a maximum of 30 years depending on the total amount of your student loans.

A level repayment plan is best suited for those who wish to take control of their finances with a lower monthly payment and the convenience of a single bill.

This plan is best for those whose current earnings are low but are expected to increase in the near term.

A plan created for people whose current earnings are low but expected to go up in a few years

With this plan, your payments are based upon your income and are adjusted annually. It's best suited to those with extreme financial problems who may be in danger of default.

* It is the borrower's responsibility to provide adequate documentation of their income. Information provided should be sufficient for the lender to make a determination as to what the monthly loan payment amount will be.

A new borrower on or after October 7, 1998, with an outstanding balance of principal and interest in FFELP loans may repay over a 25-year period on a level or graduated payment plan if they have FFELP loans totaling in excess of $30,000. Under the other repayment options available in the consolidation program, you must have at least $40,000 in debt to qualify for a 25-year repayment period. If you have debt in excess of $60,000 and wish to repay over a 30-year period, you should select one of the other repayment options.

The length of time you can choose to repay your loan is dependent upon your total loan balance, both for those loans you are consolidating and for any additional education loans that you have but are not consolidating; as long as such loans do not exceed the amount of the consolidation loan and the loans are not in default.

Note: Maximum repayment period excludes authorized periods of deferment and forbearance.

Once your loan has been funded, you will receive a Loan Consolidation Disclosure Statement and Repayment Schedule from our servicer. Thirty days from the date your loan is funded, you are required to begin repayment according to that schedule.

Yes. Simply contact our servicer to switch plans. There are no extra costs or penalties to switch plans, and you can do so once a year.

Yes. And by doing so, you can shorten your overall loan term and decrease your interest costs. The extra money you send in each month is applied directly towards the principal balance of your fixed interest rate loan, so you can pay your loan off faster. Best of all, you can pay off your consolidation loan early without penalty or fee.

Under the Federal Consolidation Loan Program, you may have a right to defer (postpone) payment on your consolidation loan. You are not responsible for paying interest that accrues on the subsidized portion of the Consolidation loan during eligible deferment periods. A deferment may be available to you if you are:

If you are unable to make your scheduled payments, you may have a right to a reduced payment amount, an extended time to make payments or to temporarily stop making payments under forbearance. Interest charges continue to accrue during a forbearance period.

There are three types of forbearances: discretionary, mandatory and administrative. You may be granted a mandatory forbearance under the following conditions: