Chase Bank, or JPMorgan Chase Bank as it is also known, was founded in 1799 under the name Bank of the Manhattan Company. This bank is considered to be one of the “Big Four” banks, along with Citigroup, Wells Fargo, and Bank of America. This means that it is one of the leading banks in the United States. It has more than 5,000 branches across the world and provides service to customers who live in over one hundred different countries.
Chase provides a variety of banking services such as money saving tools, credit cards, mortgages, and loans to its customers.
Historically, Chase has offered both private and federal student loans. Regardless of your lender, there are some benefits and drawbacks to opting for either type of student loan.
Since your loan could end up potentially costing you hundreds and even thousands of dollars in interest, it is important to understand what type of loan would best meet your financial needs.
Check out more details below about the loans that have been offered through Chase. It is important to note that this information is primarily provided for students who have borrowed from Chase in the past.
Recently, Chase halted their student loan services. However, there is a chance that they may resume services in the future, in which case this information might be helpful.
What Does Chase Offer?
Private Chase Student Loans: As you may be aware, private student loans should only be taken out if they are absolutely necessary. They can often serve to meet a vital gap in the actual cost of attending college versus the financial aid that the student was awarded. Additionally, they can temporarily provide a student with the option to spend more time focusing on their studies and less time working. However, this should not be considered a primary funding source given the high cost of borrowing private loans. In fact, you should be certain that you have maximized federal funding before looking into these loans.
While Chase used to offer private student loans with competitive interest rates, they are currently not available through this lender. As such, borrowers will need to check out the private student loan rates at other banks of credit unions before deciding which one is right for them. Two of the largest private loan companies are Sallie Mae and Wells Fargo. Before Chase stopped offering private student loans, these were some of the loans they offered:
Graduate Student Loans by Chase: As the name suggests, these loans were only open to graduate students who needed additional funding to cover the gap in the cost of continuing their education. The amount that the student was eligible to borrow, along with the interest rate, was decided based on the student’s credit score. This program was especially appealing to graduate students because there was no penalty for repaying the loan early and there were no origination fees. Additionally, students could defer payments while they were still in school. The student could borrow any amount, up to the cost of attendance at their school.
Chase Select Private Student Loans: Unlike the previous example, this loan was open to undergraduate students who needed financial assistance to cover the cost of their college education over and above what the government could provide. Students could borrow up to the unmet cost of the annual tuition at their school once any other scholarships, grants, or loans had been applied. Like the Chase Graduate Student Loans, this program did not have a penalty if the student chose to repay the loan early, had no origination fee, and students were not required to start repaying the loan until after they graduated from college. However, interest did continue to accrue on the loan while they were enrolled in school.
In some cases, students with limited credit history or poor credit would need a cosigner. Having a cosigner could also benefit students with solid credit, as they might qualify for a lower interest rate. As previously mentioned, students who take out a private loan should be sure to minimize the amount of loans they take out due to the high cost of borrowing a private loan.
Federal Chase Student Loans: Like many lenders who service federal loans, Chase was a major player in the student loan business. Students were able to choose Chase Bank as their lender of origin for any of the following federal loans that they borrowed: Federal PLUS Loan (for parents), Federal Direct Loan Consolidation, Perkins Loan, and the Stafford Loan.
Students who borrowed federal loans through Chase received a number of benefits. First, given the large size of the company, it was easy to obtain customer service, loan support, and loan advice before deciding which loan to apply for and which loan to borrow. In addition, students had access to competitive low interest rates, which were fixed for the life of the loan. Even though the lender was Chase, students benefited from the guarantees of having a federal loan, such as the ability to have deferment or forbearance protection.
It is currently unclear when and if Chase will ever resume serving as a primary lender for federal student loans. Students who currently have loans with Chase can find contact information at this website. This website also includes a list of frequently asked questions and indicates that current student loans are being serviced through AES.
Where Can I Find a Good Student Loan?
Since Chase is not currently offering either private or federal student loans, students who wish to borrow a new loan to fund their studies will need to find a different credit union or bank. As you compare your options, make sure that you read all the fine print. In some cases, certain large banks are able to offer a number of perks. In addition to comparing the benefits, you will certainly want to compare the different interest rates you qualify for while considering which loan to borrow.
Image Copyright Mike Mozart.