Chase Private Student Loans
Chase no longer offers private student loans. The bank closed its student lending services in October 2012, citing the lack of growth potential for that business unit as it faced increasing competition from the federal government.
Types of Chase Private Student Loans
While it maintained an active student lending program, Chase offered two standard loans: the Chase Select Private Student Loan and the Chase Private Consolidation loan. A Chase Select Loan was a credit-based Chase Private Student Loan that had to be certified by a student’s financial aid office. A student borrower was required to complete the Free Application for Federal Student Aid (FAFSA) in order to determine his/her eligibility. A cosigner with a strong credit history improved the chances of a student borrower getting approved for a Chase private student loan, and possibly helped a student borrower qualify for a better interest rate. The Chase Select Private Student Loan could cover up to the cost of attendance minus any other aid received, pending certification by the school. Loan funds were sent directly to the school, and payments were deferred while the student was in school. Additionally, this Chase Private Student Loan had no origination or repayment fees, making it a popular option for students.
The Chase Private Consolidation Loan was another main offering from the Chase Private Student Loans program. Chase private student loans consolidation helped students manage their private student loans after college. When a student borrower consolidates, all of his/her eligible student loans are combined into one single loan. This means there’s only one private student loan payment each month. Federal student loans were not eligible for this Chase Private Consolidation Loan program.
Alternatives to Chase Private Student Loans
Since Chase doesn’t offer private student loans anymore, it’s time for you to start looking elsewhere. Students should always exhaust their federal student loan options before pursuing private student loans. Federal student loans tend to have lower interest rates, better borrower benefits, and more favorable repayment terms. Federal student loans also tend to be need-based, and do not have the strict credit requirements that many private student loans do. Schoarships and grants are also a great source of funds because they are free money that you don’t need to pay back.
If you can’t meet all of your needs with federal student loans, grants and scholarships, then we can help you find a private student loan. Use our private loan comparison tool to compare lenders side-by-side on APR, total cost and monthly payment so you can find the right student loan for your needs.