Federal Student Loan Program: Federal Stafford Loans

Consider the following features and benefits of a Stafford Loan:

• No payments are required while you are in school at least half-time
• A six-month payment-free grace period immediately following graduation or separation from school
• Flexible repayment options, including consolidation
• No prepayment penalty
• No credit check is required
• Interest may be tax-deductible.¹
• Borrowers may defer their payments for a number of reasons, such as grad school or military service.

Chase is a national leader in the Stafford loan program and has provided billions of dollars of Stafford loans to both undergraduate and graduate students. Each year, thousands of students choose us for their Stafford loans because they depend on us to provide the following:

• Trust -- As one of the nation’s leading financial institutions, Chase is a company you can trust.
• Convenience -- We offer a quick, easy application process – either online or by phone.
• Expertise -- Our team includes highly-trained and knowledgeable service representatives who can provide you with professional advice and assistance throughout the process.
• Savings -- 0.25% interest rate reduction for having monthly payments automatically deducted from your bank account (ACH) by Chase.*
• Security -- Your sensitive financial information is secure with Chase.

We recommend you review our Frequently Asked Questions for more information about Stafford loans and what you can expect from the application process.

1. Consult your tax advisor for information.

*Important Information: For unsubsidized undergraduate and graduate Stafford loans first disbursed between July 1, 2008, and June 30, 2009, the statutory rate is 6.80%. For subsidized undergraduate Stafford loans first disbursed between July 1, 2008, through June 30, 2009, the statutory interest rate is 6.00%. A 1.50% origination fee applies for loans first disbursed between July 1, 2007, and June 30, 2008. The origination fee is reduced to 1.00% for loans first disbursed between July 1, 2008, and June 30, 2009. If the loan guarantor subsidizes some or all of the 1.00% default fee, Chase borrowers will receive this benefit. For loans that are guaranteed on or after June 1, 2008, 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 cancelled, 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 correct as of 06/01/08.