CHASE HEALTH
STAFFORD LOAN FAQs

A Chase Health Stafford Loan is a federal loan with no borrower-paid origination fees, meaning you receive more money up front. For example, if you borrow $10,000, you'll get the full $10,000, not the $9,850 you'd receive if there was an origination fee of 1.5%. A Chase Health Stafford Loan is the first of the education loans you should explore to pay for your healthcare studies.

Eligible healthcare graduate students can receive from $500 up to $40,500 annually (of which up to $8,500 may be subsidized), based on discipline and length of academic year if you're enrolled in a participating school as least half time. Your school will determine your eligibility for subsidized and/or unsubsidized federal education loans based on need, once you fill out the Free Application for Federal Student Aid (FAFSA) *.

In general, eligible borrowers must:

  • Demonstrate financial need for subsidized Stafford loans
  • Be enrolled at least half time in an eligible program
  • Be a U.S. citizen or national, or eligible non-citizen, with a valid Social Security Number
  • Have a United States address (no P.O. Boxes)
  • Register with the Selective Service, if required
  • Not be in default of any federal education loan or owe money on a federal student grant
  • Maintain satisfactory academic progress once in school
  • Certify, as part of the FAFSA, a statement that you will use federal student aid only for educational purposes
  • Not have borrowed in excess of any annual or aggregate federal Stafford loan limit
  • Not have been convicted of, or have pled guilty or no contest to, a crime involving fraud obtaining Title IV financial assistance, unless you repay in full the funds that were obtained fraudulently
  • Not be liable for an overpayment nor have exceeded annual or aggregate limits imposed on any Federal Stafford Loans or other Title IV programs
  • Meet other Title IV program requirements—see your financial aid office for more information

0.25% interest rate reduction for having monthly payments automatically deducted from your bank account (ACH) by Chase

The Chase Health Education Program has no origination, repayment or default fees for the Chase Health Stafford Loan.

The following interest rates apply to Chase Health Stafford Loans that have a first disbursement date between June 1, 2008, and June 30, 2009:

  • 6.8% while you're in school and during the grace period
  • 5.8% at repayment and for the remainder of the loan term

The interest rate for a Chase Health Stafford Loan disbursed between July 1, 2006, and June 1, 2008, is fixed at 6.8% (including periods when the borrower is in school, grace, deferment and repayment).

Loans disbursed prior to July 1, 2006, retain a variable rate capped at 8.25%.

Call a Chase Health Education Program Specialist toll-free at 1-800-211-6730 Monday - Friday between 8 AM and 7 PM Eastern.

Federal student loans, like Stafford and PLUS loans, usually have lower interest rates than private student loans and may include government-subsidized interest payments during qualifying periods of enrollment and deferment. Federal loans have standard rates and fees that don't vary by lender, though borrower benefits may. Chase provides funds for federal student loans but also offers the Chase SelectSM Health Professions Private Loan. Private loans are designed to supplement federal loans when federal loans aren't enough to cover the entire cost of your education.

You should always exhaust your federal student loan options before applying for private loans.

*Important Information:
Federal Loans—For Chase Health Education Program loans that have a first disbursement date between June 1, 2008, and June 30, 2009, Chase will pay on behalf of the borrower all federally mandated origination fees for Chase Health Stafford Loans. In addition, for Chase Health Stafford and Grad PLUS loans that are originated and serviced directly by Chase under federal lender code 831216, Chase will pay all federally mandated default fees that are not paid by the guarantor on behalf of the borrower. Stafford loan borrowers will receive a 1.00% interest rate reduction, and Grad PLUS loan borrowers will receive a 0.40% interest rate reduction. The interest rate reductions will be applied automatically at the time the loan enters repayment and will remain in place for the remainder of the loan term or until loan default or loan consolidation. The interest rate reductions will not lower the monthly payment amount but instead will reduce the interest that accrues, thereby reducing the total amount repaid and the loan term. Terms and conditions apply. Benefit programs are subject to change. Loans are subject to submission of a completed application and other required documentation and verification. Grad PLUS loans are subject to credit approval and verification of application information. This information was current as of 03/01/2008.

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