This will provide students with hundreds of dollars to apply directly to their college costs. For example, a student borrowing $10,000 will receive the full $10,000 to pay school costs for the 2006-07 school year. In comparison, they would receive just $9,700 this year because $300 of the $10,000 loan would go to pay the origination fee.

"We understand that schools are sensitive to the origination fees paid by their students. That is why we're pleased to be providing these exciting new savings." said Robert D. Moore, President and CEO for Chase Education Finance.

Students can take advantage of the zero-origination fee for both undergraduate and graduate Stafford loans guaranteed after May 1, 2006. These loans must be funded by Chase, but can be serviced by a number of Chase's servicing partners.

As with many other Chase loans, these Stafford loans borrowers will also be able to take advantage of valuable benefits available during repayment.