Chase Health Education Program

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Frequently Asked Questions



The Chase Health Education Program is made up of four loans:

Federal

  • Health Stafford loan
  • Health Grad PLUS loan

Private

  • Health Private loan
  • Health Residency loan

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

A Grad PLUS loan is a federal loan that can supplement your Chase Health Stafford Loan, helping to fill the gap between the money you have for school and the cost of healthcare education.

A Private loan can help when federal loans, grants, scholarships and other financial aid just don't cover your cost of education.

A Residency loan is a private loan that can pay certain costs associated with your residency or internship, including travel expenses for interviews and relocation and fees for exam prep courses.


Stafford loan: Borrow up to $8,500 in subsidized funds (the government pays the interest while you are in school) and up to $32,000 in unsubsidized funds (you are responsible for paying interest while you are in school). Your school will determine your eligibility for subsidized and/or unsubsidized health education loans based on need, once you fill out the Free Application for Federal Student Aid (FAFSA).

Grad PLUS loan: Borrow a minimum of $500 up to the cost of your education less other aid. Unpaid interest accrues and may be deferred. Deferred interest is added to principal at repayment (following uninterrupted periods of grace and deferment).

Private loan: Borrow a minimum of $500 up to the cost of education less other aid. The cumulative student loan limits vary depending on the healthcare discipline you are studying. What healthcare disciplines are eligible for this program?

Residency loan: Borrow a minimum of $500 up to a maximum one-time limit of $15,000 with this private loan. The Chase Health Residency Loan may be used only once — even if less than the maximum amount is borrowed.


Students looking for health services student loans and studying the following disciplines are eligible to be approved for Chase Health Education Loans:

Discipline Allopathic
Osteopathic
Dentistry
Podiatry
Optometry
Pharmacy
Veterinary Medicine
Physicians Assistants
Physical Therapy
Occupational Therapy
Chiropractic
Nursing
Audiology
Clinical Psychology
Dental Hygiene
Dietetics/Nutrition
Epidemiology
Speech-Language Pathology
Allied Health
Public Health
Other Health Profession Disciplines
Loan Limit: Maximum $250,000 $200,000 $150,000
Loan Limit: Minimum $500

What are the eligibility requirements?

Eligible borrowers must:

  • Be enrolled in a Chase Health Education Program-participating school
  • Be enrolled at least half time
  • Be a citizen or permanent resident of the United States (applies to both borrower and cosigner)
  • Have a United States address (no P.O. Boxes)
  • Be at least 18 years of age, or other age required by applicable law (applies to both borrower and cosigner)


Borrower benefits are incentives given by lenders for making your payments on time or having your monthly payment automatically withdrawn from a bank account.

The borrower benefits for the Chase Health Education Program include:

Federal Stafford Loan

  • 1.00% interest rate reduction at repayment*

Federal Grad PLUS Loan

  • 0.40% interest rate reduction at repayment*

Private and Residency Loans

  • 0.50% interest rate reduction at repayment — Reduction becomes permanent after the first 48 on-time payments
  • 0.25% interest rate reduction for enrolling to make automatic payments

Borrower benefits are subject to change.


The Chase Health Education Program has no origination or repayment fees for the Stafford loan, the private loan or the private residency loan. There is a 3% origination fee for Grad PLUS.


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

Variable rate Stafford loans disbursed prior to July 1, 2006, retain a variable rate capped at 8.25% and are subject to an annual rate change on July 1 for the life of the Stafford loan.

Effective July 1, 2007, through June 30, 2008, the rates for variable Stafford loans first disbursed between July 1, 1998, and June 30, 2006, are as follows:

Federal Stafford

During school, grace and deferment periods: 6.62%
During repayment, including forbearance periods: 7.22%

Grad PLUS

Disbursed on or after July 1, 2006: 8.5% fixed
Disbursed prior to July 1, 2006: Variable, adjusted annually on July 1
Current rate for a Chase Health Grad PLUS Loan is 8.2%

Private and Residency

The interest rates are divided among three tiers, based on borrower and (as applicable) cosigner credit. Tiers range from the Prime Rate minus 0.25% to Prime Plus 4%. The Prime Rate is a variable rate that is updated on the first day of each quarter (January 1, April 1, July 1, October 1) using the index found in The Wall Street Journal on the first business day of the preceeding month.

However, borrowers obtain a 0.50% interest rate reduction in repayment and can earn an additional 0.25% interest rate reduction for enrolling to make payments automatically from a bank account.


Applying with a cosigner for private or residency loans may, depending on your credit history, allow you to achieve a better interest rate than by applying on your own. Through the Chase Health Education Program, borrowers can request a cosigner release on the private or residency loan if their first 24 scheduled principal-and-interest payments are made on time.

If you are applying with a cosigner, you and your cosigner should complete a paper application then mail it to the Chase Health Education Program Processing Center. Cosigner electronic application capability is not yet available through this site.


Chase has partnered with Great Lakes Higher Education Services Corp. to service the Chase Health Education Program. Great Lakes maintains loans on Chase's behalf and helps us with a variety of duties, including collecting payments, applying deferments and forbearances, and answering telephone and e-mail inquiries about accounts.


Call a Chase Health Education Loan Program Specialist toll-free at 1-877-744-2633 for both general questions and detailed account and servicing information.


Send application and enrollment forms to:

Chase Health Education Processing Center
c/o Great Lakes Educational Loan Services
P.O. Box 64080
St. Paul, MN 55164-0080


Federal student loans, like Stafford and PLUS loans, usually have lower interest rates than private student loans and may include government-subsidized payments. 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 private loans like the Chase Health Education Private and Residency loans. 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.


Chase currently holds and does not sell its Chase Health Education Program loans.

*Important Information:
Federal Loans - For Chase Health Education Program loans that have a first disbursement date between February 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 by Great Lakes Education Loan Services, Inc. on behalf of Chase under federal lender code 831144, 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. 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.

Private Loans - As students determine the best way to finance their education, they should consider the full range of student financial aid options available. Private loans, like the Chase Health Education Private and Health Residency Loans, can be used when federal loans, grants and other forms of financial aid are not sufficient to cover the full cost of education. Chase Health Education Private and Health Residency loans are subject to credit approval, receipt of a completed and signed Application/Promissory Note and other required documentation, and verification of income and enrollment. The 0.25% interest rate reduction for ACH is available to borrowers who arrange with the loan servicer to automatically deduct monthly payments from their bank account. The interest rate reduction will begin when automatic principal and interest loan payments start and will remain in effect as long as automatic payments continue without interruption. The reduced interest rate may return to the non-discounted rate if automatic payments are canceled, rejected or returned for any reason. Cosigner release is subject to certain conditions, including (i) the borrower must make 24 consecutive on-time principal and interest payments, and (ii) the borrower must be creditworthy at the time of the request to release the cosigner. Terms and conditions apply. Benefit programs are subject to change. This information was current as of 03/01/2008.

 
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