I talked to Chase yesterday and they told me there is a 1.5% origination fee for Stafford and 3% for Grad plus loans. They said the information of the website is not up to date.
I just got off the phone with Chase, and they say there is a 1% origination fee, but they will pay for that on your behalf. same with Grad plus
this might subject to change maybe next month
No, because the origination fee is paid at the origination of the loan. If they try to add it on, you just go with someone else.I'm not good at this, but can they technically tell you one day that they won't cover the fee anymore?
So it looks like Chase has their rates up. 5.8%, with a 1% decrease. Should I wait until 6/1 to sign up? This still looks like the best option to me.
But is it a guaranteed benefit? That's the key question for me.
Anyone have a link to the 5.8% chase website? Thanks!
I have an update for those considering Chase. My financial aid advisor recently informed me that Chase will honor the 0% origination fee if your application goes through before June 1. It would be great if someone else could confirm this. She told me that she heard this from a Chase rep.
You can't just apply through the Chase website and have the money sent to your school?Definitely true, this is the best lender program I can find for Stafford Loans.
Only catch is that your school has to participate in the program...which mine doesn't!!!!
You can't just apply through the Chase website and have the money sent to your school?
They're only offering a 0.25% ACH credit during repayment. Chase is still offering a better deal.I have some good news...T.H.E. is lifting their suspension on new loan applications starting May 27th. According to northstar.org :
Exciting News - T.H.E. will begin taking Federal Stafford, Federal PLUS and Federal Grad PLUS applications for the 2008/09 school year beginning Tuesday, May 27th.
When applying for the Chase loan I get "Contact your financial aid office to apply for a Medical Stafford Loan." after choosing my school. Anyone else running into the same problem?
jb!
On new loans taken out this year, my sources tell me, with 100% certainty, that rates will not drop this July 1.Does anyone know if the the Stafford Loan rate is expected to drop after July 1, 2008? I know that they adjust the rate every year on July 1st, and due to the recent cuts by the Fed this year, it would make sense that the Stafford Loan rate would also decrease. In this case, is it better to wait to guarantee your loan after July 1st? Thanks!
Stuck between two:
Wells Fargo, 0% on origination and default fees on loans guaranteed before 7/1
Citibank, up to 0.75% reduction at repayment and will waive last 6 months if all payments on time
Thoughts?
I went to www.finaid.org and they have calculators which are pretty idiot proof that allow you to model out the exact amounts and benefits of each loan you're considering. If you're planning to extend your loans out to 20 or 25 years, interest reductions are a bigger benefit that the 2.5% in one time only fees. But check out your particular situation with the calculator.
It's not breach of contract since incentives nor fees are not even listed in the MPN, which I was very frustrated to find out.
Just called CitiBank - they have a 1% Origination fee as well.
National City's website states 6% with no Origination fees, but max of 3,500 (might just be for undergrads)
Did they say if they loan had to be dispersed by a certain date to ensure the discount? And what total amount are they letting you borrow? Thanks.
Anybody else find any 0% origination fee lenders? Right now, I would be happy just to have that!
Yep. I signed my MPN before June 1 for Chase and still got the 1% since the funds were going to be processed after the date.Stafford subsidized
1% orig., 1% default (may be subsidized by gaurentor), 1% off orig. principle after 1st 12 payments, 0.25% auto pay reduction (don't have to have a US Bank account to qualify)
Everyone out there...MPN's now at 0% orig. fee make little difference now if it only applies to monies dispersed before July 1st (Wells Fargo comes to mind)
Well that's a bummer, because I was under the impression you just had to get everything submitted (and your school's fin aid office had to do their part) by June 1 to be released from the 1% origination fee. My school's fin aid rep even talked to a Chase rep.Yep. I signed my MPN before June 1 for Chase and still got the 1% since the funds were going to be processed after the date.
I'm guessing no. I'm guessing the incentives will be what they are at the time of graduation. Maybe the lending market will swing back and they'll return to 1% reduction.Well that's a bummer, because I was under the impression you just had to get everything submitted (and your school's fin aid office had to do their part) by June 1 to be released from the 1% origination fee. My school's fin aid rep even talked to a Chase rep.
But we still get the 5.8% interest at graduation and 1% principal credit (if the origination fee is charged), right?? (I've heard the answer is no.)