A Federal Consolidation Loan is part of the family of loans available
under the Federal Family Education Loan (FFEL) program as authorized
by the Federal government. With a Federal Consolidation Loan, you can
consolidate all or some of your outstanding education loans into a single
new loan, even if your loans are currently held by more than one lender
and are of different loan types. With a consolidation loan, you take
advantage of these significant benefits:
- A fixed interest rate.
- Reduce your monthly payments by as much as 45% (by applying during
grace and extending your repayment terms).
- Pay no penalty for early repayment.
- Reduce your monthly bill-paying paperwork.
- No credit check, no co-signers needed and no fees.
- Get answers to all your student loan questions from a single source.
By extending your loan term or selecting one of our graduated repayment
plans, you can lower your monthly payments by as much as 45%. Your loan
counselor will help you to understand your options. In addition, there
is NO PENALTY for early repayment of your loan. However, please note:
by extending your payments, your overall financial obligation may increase
because you will be making payments (principal plus interest) for a longer
period of time. If you do not choose to repay your loan in full prior
to the end of the extended period, the total cost of your loan will be
greater than what you would have paid if you had not extended the term.
The fixed interest rate for your Chase Loan Consolidation Program
loan is based on the weighted average of the interest rates of the loans
you consolidate (rounded up to the nearest 1/8th percent) or 8.25% which ever is lower. For individuals
with variable rate Stafford loans disbursed between 7/1/98 and 6/30/06, and who are now in the repayment
period, this interest rate would be 7.25%. By taking out a consolidation
loan now, you can LOCK IN this 7.25% rate, thereby eliminating the worry
that variable rate Stafford loan rates will go up in the future.
If you consolidate while you are in your grace period we will hold
your application until close to the time of your grace end date. This
way, we preserve as much of your existing grace period as possible. If
you would like to go into repayment immediately rather than wait until
the end of your grace period, simply tell your loan counselor.
It takes 30-60 days for us to receive payoff information from your lenders,
review your application for completeness and disburse your new consolidation
loan. If, during the process, you would like an update on your loan's
status, you may call your loan counselor.
Our trained professionals have experience in setting up consolidation
loans so you can begin saving quickly. All you need to do is contact
us by calling our convenient toll-free number or by applying online and
we will get you started! We'll review your information, process your
application and work with your current lenders to ensure that all your
loan information is up to date and accurate. You finish the process with
a single loan; a low, fixed rate; a significantly lower loan payment;
and the peace of mind that you have improved your financial situation
now, when you need it most. It's that simple.
You are eligible for our Federal Consolidation Loan so long as, at the time of funding, you: (1) are in your loan grace period or have entered repayment on each loan chosen for consolidation; and (2) consolidate eligible federal student loan debt meeting Chase' minimum balance requirement of $20,000. Other terms and conditions apply. Please contact us for details on eligibility criteria.
Eligible Federal student loans include:
- Federal Stafford Loans, unsubsidized and subsidized [including Guaranteed
Student Loans (GSL)]
- Direct Stafford Loans
- Federal Supplemental Loans for Students (formerly Auxiliary Loans
to Assist Students/ALAS and Student PLUS Loans)
- Federal Perkins Loans, formerly National Defense/National Direct
Student Loans (NDSL)
- Health Professions Student Loans, including Loans for Disadvantaged
Students (HPSL)
- Federal Insured Student Loans (FISL)
- Federal PLUS Loans (Parents and Graduate/Professional Students)
- Direct PLUS Loans
- Federal Consolidation Loans
- Direct Consolidation Loans
- Nursing Student Loans (NSL)
There are no fees or credit checks when you apply to consolidate
your loans with us.
You can find lender names and addresses in your repayment information
for each of your loans. Or, simply call us using the toll-free number listed at the top of this page and we
can help you access all your student loans.
No. There is no credit check to obtain a Federal consolidation loan
with us.
Yes. It is extremely important to continue to make all of your regular
payments on the loans that you have selected to consolidate until you
receive your new Loan Consolidation Disclosure Statement and Repayment
Schedule from your new loan
servicer.
Yes. Within 180 days of the funding date for your consolidation loan,
you may add additional eligible loans without completing a new application.
After 180 days, you will need to reconsolidate your loans. To add a loan,
contact your new loan servicer. If you have questions or concerns not
answered here, Contact
Us!
You may choose one of several repayment options for your Federal consolidation
loan. The repayment term can have a maximum of 30 years depending
on the total amount of your student loans.
Repayment options:
Level Repayment Plan
A level repayment plan is best suited for those who wish to take control
of their finances with a lower monthly payment and the convenience of
a single bill.
- Fixed monthly payment
- Monthly payments credited to principal and interest
- Lowest overall interest cost of the various repayment options
This plan is best for those whose current earnings are low but are expected
to increase in the near term.
- Lower, mostly interest payments over the first two years of repayment
- Full principal and interest payments begin in year three of repayment
A plan created for people whose current earnings are low but expected
to go up in a few years
- Lower, mostly interest payments over the first four years of repayment
- Full principal and interest payments begin in year five of repayment
With this plan, your payments are based on your income during any period when you have a partial financial hardship. The maximum repayment period under this plan may exceed 10 years. This plan is best suited to those with extreme financial problems who may be in danger of default.
- Payments must cover the interest that accrues between scheduled payments
- Higher finance charges over the life of the loan
Income-Based Repayment Plan
Effective July 1, 2009, the IBR repayment plan is available to all borrowers who have a partial financial hardship, except for FFEL or Direct Loan Parent PLUS Loan borrowers, and FFEL or Direct Loan Consolidation Loan borrowers who repaid a Parent PLUS Loan through a consolidation loan.
Extended Repayment Plan
A new borrower on or after October 7, 1998, with an outstanding balance
of principal and interest in FFELP loans may repay over a 25-year period
on a level or graduated payment plan if they have FFELP loans totaling
in excess of $30,000. Under the other repayment options available in
the consolidation program, you must have at least $40,000 in debt to
qualify for a 25-year repayment period. If you have debt in excess of
$60,000 and wish to repay over a 30-year period, you should select one
of the other repayment options.
The length of time you can choose to repay your loan is dependent upon
your total loan balance, both for those loans you are consolidating and
for any additional education loans that you have but are not consolidating; as long as such loans do not exceed the amount of the consolidation loan and the loans are not in default.
| Outstanding Balance |
Maximum Term |
| $20,000 - $39,999 |
20 Years |
| $40,000 - $59,999 |
25 Years |
| $60,000 or more |
30 Years |
Note: Maximum repayment period excludes authorized periods of deferment
and forbearance.
Once your loan has been funded, you will receive a Loan Consolidation
Disclosure Statement and Repayment Schedule from our servicer. Thirty
days from the date your loan is funded, you are required to begin repayment
according to that schedule.
Yes. Simply contact our servicer to switch plans. There are no extra
costs or penalties to switch plans, and you can do so once a year.
Yes. And by doing so, you can shorten your overall loan term and decrease
your interest costs. The extra money you send in each month is applied
directly towards the principal balance of your fixed interest rate loan,
so you can pay your loan off faster. Best of all, you can pay off your
consolidation loan early without penalty or fee.
Deferment :
Under the Federal Consolidation Loan Program, you may have a right to defer (postpone) payment on your consolidation loan. You are not responsible for paying interest that accrues on the subsidized portion of the consolidation loan during eligible deferment periods.
- Enrolled at least half time at an eligible school
- Engaged in a full-time course of study in a graduate fellowship program
- Engaged in a full-time rehabilitation training program for individuals with disabilities (if the program is approved by the Department of Education)
- Conscientiously seeking but unable to find full-time employment (for up to three years)
- Experiencing an economic hardship as determined by federal law, including service as a Peace Corps volunteer (up to three years)
- Serving on active duty or performing qualifying National Guard duty during a war or other military operation or national emergency and, if you are serving on or after October 1, 2007, for the 180-day period following the demobilization date for your qualifying service
- If you are a member of the National Guard or other reserve component of the U.S. Armed Forces (current or retired) and you are called or ordered to active duty while you are enrolled at an eligible school or within six months of being enrolled
If you are unable to make your scheduled payments, you may have the right to a reduced payment amount, an extended time to make payments or to temporarily stop making payments under forbearance. Interest continues to accrue during a forbearance period and will be capitalized at the end of the period if not paid.
If you indicate a temporary inability, but willingness, to pay the loan(s), you may ask for or be offered a forbearance. You must apply and qualify for forbearance and your lender must approve the request in order for it to go into effect.
You may be granted a forbearance under the following conditions:
- Financial hardship and/or illness
- Serving in a medical or dental internship or residency program
- Serving in a national service position for which you receive a national service education award under the National Community Service Trust Act of 1993
- Qualifying for a partial repayment of your loans under the Student Loan Repayment Program (Department of Defense)
- Having a debt burden on Title IV loans that collectively exceeds 20% of your total monthly gross income
Partial financial hardship is a situation in which the annual amount due on all of the your eligible FFEL and Direct Loans (as calculated under a standard repayment plan based on a 10-year repayment period) exceeds 15% of the result obtained by calculating, on at least an annual basis, the difference between the borrower's (and spouse's, if applicable) adjusted gross income and 150% of the poverty line applicable to the borrower's family's size.
If a borrower has partial financial hardship, the borrower may elect to pay the loan under an IBR plan and have his or her monthly loan payments limited to no more than 15% of the amount by which the borrower's (and spouse's, if applicable) adjusted gross income exceeds 150% of the poverty line applicable to the borrower's family size, divided by 12. The maximum repayment period for a borrower with a partial financial hardship may exceed 10 years.
Both the Income-Sensitive Repayment and the Income-Based Repayment Plans are intended to help ease the monthly repayment burden for borrowers with lower incomes.
Under an Income-Sensitive Repayment Plan, your monthly payment is adjusted annually, based on a percentage of your gross monthly income. Payment must equal at least the monthly interest accrual. You must reapply each year and provide reasonable documentation of your income, such as a copy of your income tax return, pay stub and/or W-2 statement. Income-sensitive repayment decreases your monthly payments, but repayment is generally tied to a 10-year repayment term. Therefore, the size of the later monthly payments will be larger and the total amount of interest paid over the life of the loan may increase.
On July 1, 2009, an Income-Based Repayment Plan will also be available for borrowers with Stafford, Grad PLUS and consolidation loans (that are comprised of Stafford and Grad PLUS loans), who are experiencing partial financial hardship. Under this plan, monthly payments are capped at 15% of your monthly discretionary income (the difference between adjusted gross income and 150% of the federal poverty line that corresponds to your family size and the state where you live). The monthly payment amount is adjusted annually and there is no minimum monthly payment. You must qualify each year in order to participate in this plan. The maximum repayment period is 25 years. After 25 years, any remaining debt will be discharged.* Additionally, on subsidized Stafford loans, if your payments don't cover the interest that accrues, the government pays it on your behalf for the first three years.
* Note that the forgiven amount is treated as taxable income.
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