Frequently Asked Questions

What types of loans are available through the Chase Health Education Program?

How much can I borrow?

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)

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benefits are incentives given by lenders for making your payments on time or having your monthly payment automatically withdrawn from a bank account.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

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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.

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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.

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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.

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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.

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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.

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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

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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.

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