CHASE STUDENT LOAN REVIEW
CHASE STUDENT LOAN REVIEW – Chase student loans are backed by mega corp J.P.Morgan Chase that has an asset base of well over a $ 1 trillion. They are one of the best private student loans out there, used by millions of students every year for graduate study and college. For many students reading this CHASE STUDENT LOAN REVIEW though, private loans seem to be a last resort, and for good reason.Personally I would recommend any government department education loan for a small amount of college tuition fee, but if the living expenses and total tuition costs are more than $25,000 a year, a private student loan could also be looked into. Federal loans are easy on repayment and deferment,but federal loans and grants only cover so much. One of the best features is its Consolidation plan, that really stands out.
CHASE STUDENT LOAN REVIEW – CONSOLIDATION
To understand what consolidation really is reminds me of a story I heard of a while back,of my fathers friends who played cards.When they were on a losing spree and had to clear debts,but dint have the money to,they would borrow from a friend and pay the previous debt,then to pay back their friend,they would borrow from another friend,and this would just go on,and only complicate things more.Its easier to take a larger sum of money just once and clear the most troublesome debt,the one that’s giving you sleepless nights,that’s giving you harassing phone calls throughout the day,the one that doesn’t stop slapping fines and penalties on you.its time you refinanced and got out of this misery.
Refinancing or consolidating your loans into one payment per month and increasing the tenure of repayment is one of the best plans that chase has to offer. Its one of the most widely used consolidating firms in north America.In order to get your loans all clubbed under the chase umbrella takes little or no effort. Federal loans however are not covered under this scheme.One of the best advantages of consolidation also is the lowered interest rates as well as the monthly single payment that is lowered,the only thing that probably increases is the time period of paying back that is inversely proportional to your monthly installment.Each typical repayment loan term is about 10 years,but if you opt for consolidation, the tenure could shoot into the range of 10 to 30 years.
The most important pre requisite for chase to consolidate your previous loans to make sure that they are all in good standing,and don’t have any discrepancies, and are from title IV schools.The minimum consolidating amount is $7500 and maximum cumulative borrowing limit is $150,000
In almost all private loans, the highest possible rate for a student who applies for a Chase Select loan without a cosigner is prime plus 6%. If the student has a cosigner it could go as high as prime plus 5.5%. Are you sure about the rate that he was given? Was it called the Chase Select loan? They do have other private education loans as well. And it is true that 99.9% of private loans have variable rates
Typical repayment period is about 10 years, but can be altered accordingly to even 25 years. This will lower the monthly payments, but interest will increase substantially.
Chase has three repayment plans :
Immediate-In this plan the borrower may start making payments 60 days after final disbursement of the loan amount.
Deferred-As the name suggests, and which is also the most preferred repayment plan, whereby both the principal and interest can be paid 6 months after finishing the college course/graduation
Interest only –An interest only repayment plan whereby borrower can make payments 60 days after final disbursement of loan amount, and interest and principal 6 months after course completes
For medical students doing internship, deferment period can be increased, if prior intimation is given in writing.
CHASE STUDENT LOAN-DEFERMENT & FORBEARANCE
As stated above have a “deferred” plan of repayment. Under this plan of deferment after the 6 months of grace period have been allotted to the student after completion of the college course, payments towards the debt will commence. That is all that you can defer your loan by if you chose the Deferred option.
It is interesting to learn that something forbearance also comes into play if for some reason you cannot continue making payments towards the loan later on.This could be for reasons like medical ill health or if you don’t find a suitable paying job.Chase will grant you forbearance if:
- you are medically incapable to make payments towards your outstanding amount
2.if you are a resident medical intern and the internship period and the grace period of deferment overlap
3.If your monthly repayment amount is 20% more than your total income for that month,which you will have t prove by documentation.
On the website you can fill in the form of hardship forbearance and can be relived from payments for a few months. In this period however the interest will accumulate. If you are unemployed however that is not grounds enough to apply for forbearance and your application maybe rejected.
The entire process of getting your application reviewed and sanctioned can be about 2-3 weeks.It would be a good idea to have your parents as co-signers,or someone with a good credit history as a co signer.Its useful to know that all loans are subject to credit approval and maybe be turned down on those grounds.On the website fill in the personal and financial details as well as the pro missionary note as honestly as you can, as this can affect your chances of approval. It would be easier if your institute that you have applied for is one of the Chase selected participating schools,if it isn’t then again loan approval might be tough.
The co signers and the principal borrowers should have a good credit history,and if the monthly payments are made in time for the first few years then the co-signers would be given the privilege to be released from the loan.A good idea like mentioned before is if your parents took the parent plus loan first.
Having worked in collections before I can tell you a few things. Try and pay each monthly installment as diligently as you can, because once you get caught in the collection process it can get ugly. You will receive calls everyday till late evening, sometimes 3-4 times a day, calls may come to your place of work, only to embarrass you. If you wish to pay on the phone when they call to collect,there is a fee for that transaction, of about $3,which might be waived if you ask politely .Simply give them your credit card information and make even a small payment,that might make the collection agency happy for a bit, and temporarily cease calls. Best thing is to stay out of that rut.
Sometimes after you fill the application form on the website,you may get a message saying that the loan has been “conditionally approved”.this only means that the information that you have submitted in the form is satisfactorily enough for the approval of the loan.
After this final approval is given after you fill correctly and sign the promissory note that has been given to you and send it back to CHASE and also after you give them other documents that support all the information that you have filled in on the online application form.This is the verification process that takes about 2 -3 weeks. If Chase then finds your credit history to be in good standing and all documents have been verified the final approval will be given.
You may contact Chase via: