Federal Student Loans

The federal government is the largest source of funding for college, which includes federal student loans.* A federal student loan from Chase Student Loans can have a low fixed interest rate and more time to repay. Additional benefits include discounts on federal student loan interest rates.

Why choose your federal student loans from Chase?

Chase Student Loans is one of the nation's leading providers of federal student loans. You'll be doing business with a company that has helped thousands of people with federal student loans, which means assistance from a knowledgeable team of school loan specialists. They can help you make financial decisions about your federal student loans and more.

The application process for a Chase student loan is secure.

Federal Student Loans options:

The Federal Family Education Loan Program (FFELP) is government-sponsored and makes federal student loans available to students and parents.

While you're in school, there are primarily three kinds of federal student loans available: the Federal Stafford Loan, the Federal PLUS Loan for parents and the Federal Grad PLUS Loan.

• Federal Stafford Loan

  Most students, regardless of financial need, are eligible for Federal Stafford Loans. The amount you can borrow depends on your year in school and your dependency status.

  You won't be required to make payments while you're attending school at least half time. Once you graduate or leave school, there is a six-month grace period when no payment is due. In some cases, payments can be delayed or deferred for reasons such as graduate school or military service.

• Federal PLUS Loan

  Parents of dependent undergraduate students who are enrolled at least half time can receive the Federal PLUS Loan on behalf of their student. The Federal PLUS Loan is a low-interest student loan that can be used to fund the entire cost of attendance, minus other financial aid. Parents may qualify for a PLUS loan even if they aren't eligible for other student loans.

  Once the loan is fully disbursed, payment is due within 60 days. Payments can be deferred while the student is still in school.

• Grad PLUS Loan

  Graduate and professional students can fund the entire cost of their education, minus other financial aid, with a Grad PLUS Loan. This type of federal student loan complements the Federal Stafford Loan and helps with the cost of graduate school. You may qualify for a Grad PLUS Loan even if you aren't eligible for other student loans.

  Once the loan is fully disbursed, payment is due within 60 days. Payments can be deferred while you are still in school.

Before you apply for a student loan, fill out the FAFSA

You'll need to complete the Free Application for Federal Student Aid before you can apply for federal student loans. The U.S. Department of Education uses this information to determine your financial need. You can download a copy, as well as complete the FAFSA online. Once you receive your award letter, you'll be able to determine the amount of the loan you may need from Chase Student Loans.

*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.