Education funding with government student loans

Government student loans should be the first type of financial aid you explore when grants and scholarships aren't enough to cover the full cost of your education. Your eligibility for government student loans is based on your financial need and a variety of other factors.

To be considered for a government student loan, you must fill out the Free Application for Federal Student Aid (FAFSA). It's the form that colleges use to help determine federal student aid eligibility.

Types of government student loans*

Chase offers a variety of government student loan options, which allow you to choose the loan that best meets your needs.

Federal Stafford Loan

While you're in school at least half time, no payments are required on this government student loan. There's also a six-month, payment-free grace period immediately following graduation or separation from school. And there's no prepayment penalty for early or additional payments.

Parent PLUS Loan

This government student loan is for parents of undergraduate dependent students to help fund the cost of their child’s education. Payments can be deferred until after that student graduates and there’s no prepayment penalty. An added bonus is that there are a variety of repayment plans available, making paying off the Parent PLUS government student loan as easy as possible.

Grad PLUS Loan

A Grad PLUS loan offers flexible repayment options to help make life easier when you decide to further your education. While you're in school, you can defer payments. Once you get out, you can make early or additional payments without penalty.

To apply for a government student loan, visit ChaseStudentLoans.com.

*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 can be used when federal loans, grants and other forms of financial aid are not sufficient to cover the full cost of attendance.

For unsubsidized undergraduate and graduate Stafford loans first disbursed after July 1, 2008, the statutory rate is 6.80%. For subsidized undergraduate Stafford loans first disbursed between July 1, 2009, through June 30, 2010, the statutory interest rate will be 5.60%. The origination fee will be reduced to 0.50% for loans first disbursed between July 1, 2009, and June 30, 2010. 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. 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 instead will reduce the interest that accrues, thereby reducing the total amount repaid and the time in which the loan is repaid. Chase may sell this loan to the U.S. Department of Education, and the U.S. Department of Education may continue to honor this automatic payment interest rate reduction. Terms and conditions apply. Benefit programs are subject to change. Loans are subject to submission of a completed application, credit approval and other required documentation and verification, as applicable.

For PLUS loans disbursed between July 1, 2009, through June 30, 2010, the statutory interest rate is 8.50% and a 3.00% origination fee is forwarded to the U.S. Department of Education. 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. 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 instead will reduce the interest that accrues, thereby reducing the total amount repaid and the time in which the loan is repaid. Chase may sell this loan to the U.S. Department of Education, and the U.S. Department of Education may continue to honor this automatic payment interest rate reduction. Terms and conditions apply. Benefit programs are subject to change. Loans are subject to submission of a completed application, credit approval and other required documentation and verification, as applicable.

This information was current as of 04/17/2010 and is subject to change. Contact Chase for the most up-to-date terms.