Official Lender Info Thread

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Does Chase say in the fine print that it can withdraw this 1% rate reduction anytime it chooses, like THE allegedly did with its interest rate reduction incentives?
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Does anyone have any advice when it comes to incentives that waive some of the last payments if you pay your loans on time for a year?

Any thoughts???
 
*Important Information
Federal Loans: For Chase Health Education Program loans that have a first disbursement date between June 1, 2008, and June 30, 2009, Chase will pay on behalf of the borrower: (1) all federally mandated origination fees for Chase Health Stafford loans; and (2) all federally mandated default fees that are not paid by the guarantor on behalf of the borrower, for Chase Health Stafford and Chase Health Grad PLUS loans. In addition, for Chase Health Stafford loans that are originated and serviced directly by Chase under federal lender code 831216, the borrower will receive a 1.00% interest rate reduction that will be applied automatically at the time the loan enters repayment and will remain in place for the remainder of the loan term or until default or loan consolidation. The 1.00% interest rate reduction will not lower the monthly payment amount but instead will reduce the interest that accrues, thereby reducing the total amount repaid and the time in which the loan is repaid. For Chase Health Education Program Chase Health Grad PLUS Loans that are originated and serviced directly by Chase under federal lender code 831216, the borrower will receive a 0.40% interest rate reduction that will be applied automatically at the time the loan enters repayment and will remain in place for the remainder of the loan term or until default or loan consolidation. The 0.40% interest rate reduction will not lower the monthly payment amount but instead will reduce the interest that accrues, thereby reducing the total amount repaid and the time in which the loan is repaid. Chase currently holds and does not sell its Chase Health Stafford and Chase Health Grad PLUS loans made under this lender code.

Private Loans: Please consider all funding options available to you. Private loans are used to supplement federal student loans when federal loans, grants and other forms of financial aid are not sufficient to cover the full cost of education. Private loans are subject to credit approval, receipt of a completed and signed Application/Promissory Note and other required documentation, and verification of income and enrollment. The 0.25% rate reduction for ACH is available to borrowers who arrange with the loan servicer to automatically deduct monthly payments from their bank account. The interest rate reduction will begin when automatic principal and interest loan payments start and will remain in effect as long as automatic payments continue without interruption. The reduced interest rate will return to contract rate if automatic payments are cancelled, rejected or returned for any reason. Terms and conditions apply. Benefit programs are subject to change.

The information contained within this document was correct at the time of publication. 01/08
 
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UserNameNeeded said:
Does Chase say in the fine print that it can withdraw this 1% rate reduction anytime it chooses, like THE allegedly did with its interest rate reduction incentives?
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they always say that. HOwever, the terms that were in effect when you signed up cannot be changed afterwards. The 1% rate reduction will always be there, at least for the 08/09 loans. After that sure they can change it.
I doubt you are going to find a company that doesn't write "subject to change." Just take it one year at the time.
 
plauto said:
The 1% rate reduction will always be there, at least for the 08/09 loans.[/quote

With all due, where is the basis for this view other than wishful thinking. Moreover, it looks as though the rate reduction is not retroactive to the disbursement date. Finally, I'd really like to see how the computations are done for 5.8% equivalence.

Sorry if all this sounds cynical, but please remember we are dealing with banks and their vast legions of lawyers.
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Segolene said:
plauto said:
The 1% rate reduction will always be there, at least for the 08/09 loans.[/quote

With all due, where is the basis for this view other than wishful thinking. Moreover, it looks as though the rate reduction is not retroactive to the disbursement date. Finally, I'd really like to see how the computations are done for 5.8% equivalence.

Sorry if all this sounds cynical, but please remember we are dealing with banks and their vast legions of lawyers.
Click to expand...

It is totally wishful thinking!
The key thing to remember is that when you sign a Federal Master Promissory note and received your disclosure statement - you will not find that interest rate reduction information anywhere on those forms and those are your legal binding contracts! It is a term they provide on this years loan but are not necessarily obligated to it because it's not contractual. If a bank can no longer profitably offer you that rate reduction, they can take it away. They will take your benefits away to please their stockholders in a heartbeat.

I've been reading articles & most recently UHEAA a non-profit state agency is lending loans at a loss. So how can this bank offer you a 1% discount and make money? The financials just don't add up...sorry, I have a business background if you can't tell...
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They can change the terms at any time for any reason. So, we should just go for the best deal (definitely make sure that there are no upfront fees, because that is one term that CAN'T be changed retroactively) and hope for the best. Maybe it's better to go with the not-the-absolute-best deal (but making sure that there are no upfront fees,) because the chances are greater that the terms won't be changed sometime down the line? Hmmmmmm......
 
From Sallie Mae website:


"For loans first disbursed July 1, 2008–June 30, 2009: Up to 2% fees that includes a 1% federal origination fee and 1% federal default fee. There are lenders and guarantors that work with Sallie Mae that pay all or a portion of these fees."

what does the bolded portion mean? I thought someone above said there were no fees w/sallie mae but it looks like there's a 2% fee to me.

But then again I'm not sure what a guarantor is or who the lender is in this situation? is sallie mae not the lender? ... i'm so confused
 
So no one thinks the stafford interest rates will decrease in July??
 
so i borrowed thru THE for the first 3 years and consolidated my first 2 years. If i have to borrow thru another lender for the 4th year, can I consolidate my loans afterwards under one company to simplify things?
 
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Dr. McDreamy said:
so i borrowed thru THE for the first 3 years and consolidated my first 2 years. If i have to borrow thru another lender for the 4th year, can I consolidate my loans afterwards under one company to simplify things?
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Yeah, you should be able to consolidate them all together. You won't get an interest reduction on the already consolidated loans, though.
 
Does anyone know about the site Myrichuncle.com is it legit. It says it reduces loans by .5% and they wont change it if you are late for a payment. Is this a legit lender? I feel like I am so over my head.
 
FYI, UPenn just sent out info to students on selecting a new stafford lender for 08-09, since the PHEAA/Penn Stafford will no longer be available, and it includes a very fresh list of current recommended lenders with updated benefits. This might be useful for others:

http://www.sfs.upenn.edu/loans/lenders-graduate-Stafford-health-Professions.htm

A lot of interesting options. Hmmm.. 1% rate reduction by Chase, but as noted above, I doubt it'd guaranteed. Also, the chase web site says that origination fees are waived for 08/09, but the Penn web site does not.

PNC looks pretty good - 0.3% reduction for automatic payments, and no origination fees.
 
For NJ residents or students going to school in NJ check this out:

https://www.hesaa.org/oNJCLASS/html/index.htm

NJCLass offers 6.55% rates and a 0.5% interest reduction for automatic payments. However, there is a 2% origination fee and credit check. New terms did not come out yet for 08/09 fin aid year. From what I understand it's not a Stafford per se.
 
hey all,

im a complete and utter newbie at all of this, so bear with me. i was thinking of going with chase for my stafford but had a couple of questions. if its a 5.8% interest rate at repayment with a 1.0% reduction at repayment, does that mean its 6.8% until my first payment, at which point it becomes 4.8%? i think someone else had a similar question earlier.

also, does anyone know if there is any pre-payment penalty for chase? i was thinking i could try to make a payment right away on the loan and get that interest rate reduction as soon as i could. i called chase and they said they were closed, even though they said they'd be open until 9 ET, so i couldn't get an answer.

thanks, everyone.
 
The Empiricist said:
hey all,

im a complete and utter newbie at all of this, so bear with me. i was thinking of going with chase for my stafford but had a couple of questions. if its a 5.8% interest rate at repayment with a 1.0% reduction at repayment, does that mean its 6.8% until my first payment, at which point it becomes 4.8%? i think someone else had a similar question earlier.

also, does anyone know if there is any pre-payment penalty for chase? i was thinking i could try to make a payment right away on the loan and get that interest rate reduction as soon as i could. i called chase and they said they were closed, even though they said they'd be open until 9 ET, so i couldn't get an answer.

thanks, everyone.
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First, I think Chase is 6.8%, with 1% reduction at repayment (subject to change) so the rate would be 5.8% at repayment.

I don't think there is any prepayment penalty, but if you immediately force the loan into repayment (assuming that you could do so) you would need to start making monthly payments. Also, you would turn the simple interest into compounded interest, and you might actually end up paying more in interest (5.8% monthly compound interest vs. 6.8% simple interest,) but I would have to do the math for that one. Why not just take out a smaller amount of loans to have the same effect?
 
plauto said:
For NJ residents or students going to school in NJ check this out:

https://www.hesaa.org/oNJCLASS/html/index.htm

NJCLass offers 6.55% rates and a 0.5% interest reduction for automatic payments. However, there is a 2% origination fee and credit check. New terms did not come out yet for 08/09 fin aid year. From what I understand it's not a Stafford per se.
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Beware of this lender, I used for undergrad, its private loans, and read the terms VERY closely. I was majorly unhappy when I went into repayment with them.
 
Sol Rosenberg said:
I stumbled upon what looks to be some good deals for people attending MO and OK schools through commerce bank. In fact, they look too good to be true, but if your are attending school in one of those states (I'm not :( ) it's probably worth looking into:

http://www.commercebank.com/persona...cationloans/loanrepayment/repaymentoffers.asp
Click to expand...

For any Oklahomans checking this out, I just wanted to note that the OSLA deal is available with multiple lenders. Check out www.osla.org to see the details and pick a lender.
 
The NJ Class loans go into repayment 4 years after disbursement which means you may wind up in repayment at an inopportune time. They do not allow you to request a forbearance either. One of my DMD kids had these from undergrad and they went into repayment year 2 of DMD (her undergrad freshman loan) with the rest entering repayment 3, and 4th year. Nightmare for her and me. Read all the notes very carefully.
 
New info on Chase loans: I recently heard from my fin aid advisor that Chase will honor the 0% origination fee that we were originally offered as long as we complete the loan application and everything goes through (requires some work on your school's end) before June 1. It remains unverified, but she said she heard this from a Chase rep.
 
Well, I just got off the phone with Chase and the 0% fees is BS. They cannot guarantee it because if the guarantor does not process everything by June 1st (and it's not going to happen) then you're stuck with the fee.
I was only a click away from signing the MPN when I realized that I really do not want to go with a lender that cannot even honor what their webpage currently states. If they cannot honor what they're saying now, just imagine what will happen to that 1% interest discount in 4+ years!
At least the other lenders are upfront about telling you the real terms, Chase sucks for willingly advertising false information :thumbdown:
 
plauto said:
Well, I just got off the phone with Chase and the 0% fees is BS. They cannot guarantee it because if the guarantor does not process everything by June 1st (and it's not going to happen) then you're stuck with the fee.
I was only a click away from signing the MPN when I realized that I really do not want to go with a lender that cannot even honor what their webpage currently states. If they cannot honor what they're saying now, just imagine what will happen to that 1% interest discount in 4+ years!
At least the other lenders are upfront about telling you the real terms, Chase sucks for willingly advertising false information :thumbdown:
Click to expand...
You're contradicting yourself. The 0% origination fee is not BS. You just have to make sure that everything is submitted by June 1. I've submitted everything on my end, and my school has said that they will do their part to meet the June 1 deadline.

Chase doesn't suck. In fact they are the best. Who are you going to go with then? They ALL have origination fees, and Chase is the only one which is offering an IRR during repayment. (Unless you have a special deal available through the state your med school is in or something.) Feel free to go with Sallie Mae--they're offering a 1% origination fee and 0.25% IRR during repayment for automatic debit.
 
What's the best option for paying/not paying the unsubsidized interest? How much does that run each year?
 
Guile said:
You're contradicting yourself. The 0% origination fee is not BS. You just have to make sure that everything is submitted by June 1. I've submitted everything on my end, and my school has said that they will do their part to meet the June 1 deadline.

Chase doesn't suck. In fact they are the best. Who are you going to go with then? They ALL have origination fees, and Chase is the only one which is offering an IRR during repayment. (Unless you have a special deal available through the state your med school is in or something.) Feel free to go with Sallie Mae--they're offering a 1% origination fee and 0.25% IRR during repayment for automatic debit.
Click to expand...

I'll make a correction, but I still stand by the fact that their webpage is not clear about the terms. If you go thru the fin aid office in your school (if Chase is on their list of preferred lenders) you might still get 0% fees. I found this out by calling the fin aid office in my school. However, if you just use the link to chase loans provided on this thread you will not get 0% fees. It is misleading because the webpage says that you do, when, in fact, even if you signed your MPN today there is no guarantee that the loan will be certified before June 1st and therefore you might get stuck with the fees. http://www.chasestudentloans.com/medical/med_stafford.htm

There are other banks with 0% fees such as PNC or BoA.

I actually ended up going with Chase after the fin aid officer in my school assured me that I will not pay any fees. However, this is misleading and I did not like it. just my .02 cents
 
So whats the bottom line. Has anyone found a lender with no fees?

I know EdAmerica used to have no fees, but as of May 15th they are also charging 1% origination. (Sorry to say the UPenn website didnt keep up either!)

(Other than Chase which only has zero fees if you had everything by June 1st, which I wont....)
 
New info:

My school's financial aid office just sent out an email stating that T.H.E. is jumping back in the market for the 2008-2009 year. The benefit is 0.25% reduction for ACH payments. However, even though they've been zero fees in the past, they will be charging a 1% origination fee this year. I have Great Lakes as the servicer of the loan and they cover the default fee.

I may go with Chase if they really won't charge me the origination fee. All my previous 3 years of loans are with T.H.E.
 
I went with National City, which was one of two lenders in my school's list (linked above) with no origination fees. 0.3% reduction for auto debit, and 0.3% after 24 payments. Not bad - but we know those can change.
 
So can programs tack on the origination or default fees if you consolidate? Even it is 0%, can it come back to be added on(with interest), if you consolidate later on?
 
SO I was going to go with Bank of America, but I just found out that they changed their origination fee and now its at 1%, which reputable banks are still at 0% origination and 0% default fees???

Thanks for your help.

All of my suggested lenders from my school have 1% Orig. fees!
 
Sorry for my ignorance. I have few general questions here.

I have one acceptance but I am still waiting for two waitlists from schools I liked more.
The FinAid office of the school that accepted me requsted that I do my Mater Promissory Note as soon as possible meaning I have to chose the lender for my Stafford loan.
The questions:

After I submit my MPN could I not take this loan at all? Or does submitting of MPN equal signing the loan contract?
Is that possible to use the loan for another school after you submit the MPN if you get accepted just before the school starts?
Until what time could I possibly change the lender or is that impossible after I submit MPN?

Also, as I understood, I would not get a detailed financial aid letter with all the loan possibilities, grants and scholarships until I submit my MPN. How could people compare there FianAid offers in cases of multiple accepances then?

Thank you very much!
[I posted this in another thread as well, please, respond once.]
 
looks like AMS education trust has 0% origination fees but a 1% default fee.
0.25% interest reduction after auto debit.

Also between Chase and Citibank, which seems like the better deal ?

Chase - 1% origination and 1% default fee and .25% reduction
Citi - same fees and 0.75% reduction (auto debit and 24 on time payments) and they forgive the last six months

seems like citibank is a good deal so why does no one ever mention them?
Is AMS a better deal because of no fees? And if I go with AMS and then consolidate after graduation, will they charge me the fees?

Thanks for any help you may provide :)
 
predental1984 said:
looks like AMS education trust has 0% origination fees but a 1% default fee.
0.25% interest reduction after auto debit.

Also between Chase and Citibank, which seems like the better deal ?

Chase - 1% origination and 1% default fee and .25% reduction
Citi - same fees and 0.75% reduction (auto debit and 24 on time payments) and they forgive the last six months

seems like citibank is a good deal so why does no one ever mention them?
Is AMS a better deal because of no fees? And if I go with AMS and then consolidate after graduation, will they charge me the fees?

Thanks for any help you may provide :)
Click to expand...

thanks for that. I concur as simpletuition.com also shows a similar benefit. Now that 0.75% reduction may not be there in four years :(

Is there anyway to suggest citi or whomever to include those terms in gurantee in the promissory note? It makes no sense why it is not there, when they advertise it?
 
Doctor Bagel said:
https://wfefs.wellsfargo.com/advisor/recommendations.efs

4. Sallie Mae -- they've taken over the Medloans program. It looks like there are no benefits aside from no fees on Staffords
and linking with Upromise accounts.

http://www.salliemae.com/get_student_loan/find_student_loan/grad/med_school_loans/medloans/
http://studentloan.citibank.com/slcsite/fr_advisor.asp?Source=icntr00100
Click to expand...

I just called sallie mae about the benefits and a customer service told me that points cut for automatic payment and paying on-time stands. Did this person didnt know or what? I guess I will have to call again...
 
according to citi website: their origination rate is 1.5% and default is 1%
another thing that got me is that you have to pay the loan in 10yrs :oops:
 
roc said:
I just called sallie mae about the benefits and a customer service told me that points cut for automatic payment and paying on-time stands. Did this person didnt know or what? I guess I will have to call again...
Click to expand...
I spoke with them today:
0.25% interest rate reduction for paying by automatic debit available during active repayment for as long as the borrower's monthly payment is successfully deducted from his/her bank account


This still stands. However, no other benefits, like with some other lenders...
 
roc said:
according to citi website: their origination rate is 1.5% and default is 1%
another thing that got me is that you have to pay the loan in 10yrs :oops:
Click to expand...
Talked to citi today as well.
1% origination, 1% default

But also:
0.50% automatic interest rate reduction when you enter repayment,
0.25% interest rate reduction when you enroll in our auto-debit payment program
Citibank saves you even more by offering to waive your last six monthly payments when all payments have been made on time -saving you up to 6.00% on your principal loan balance.


I'm leaning towards Citi because of that last benefit. I may have to pay the origination and default fees, but because of the 6% benefit, am I winning in the end? Citi says they'll honor this benefit... I just hope I don't have to consolidate because I'll probably going into public health or primary care, hah. Thanks for advice.
 
nikegrl23 said:
Talked to citi today as well.
1% origination, 1% default

But also:
0.50% automatic interest rate reduction when you enter repayment,
0.25% interest rate reduction when you enroll in our auto-debit payment program
Citibank saves you even more by offering to waive your last six monthly payments when all payments have been made on time -saving you up to 6.00% on your principal loan balance.


I'm leaning towards Citi because of that last benefit. I may have to pay the origination and default fees, but because of the 6% benefit, am I winning in the end? Citi says they'll honor this benefit... I just hope I don't have to consolidate because I'll probably going into public health or primary care, hah. Thanks for advice.
Click to expand...

You may want to try discover....no fees and .25% for auto pay. If you have to consolidate you will lose all your benefits. read the fine print all benefits can change at anytime.
 
lucky lady said:
You may want to try discover....no fees and .25% for auto pay. If you have to consolidate you will lose all your benefits. read the fine print all benefits can change at anytime.
Click to expand...


Discover FTW!!!
http://http://www.discoverstudentloans.com/student/stafford.aspx

0% origination and default and silliness and just because we can fees
0.0025% not gonna happen but who cares repayment rate reduction

...much better than everyone else (or at least the other 30-45 banks i checked out)
 
nikegrl23 said:
Talked to citi today as well.
1% origination, 1% default

But also:
0.50% automatic interest rate reduction when you enter repayment,
0.25% interest rate reduction when you enroll in our auto-debit payment program
Citibank saves you even more by offering to waive your last six monthly payments when all payments have been made on time -saving you up to 6.00% on your principal loan balance.


I'm leaning towards Citi because of that last benefit. I may have to pay the origination and default fees, but because of the 6% benefit, am I winning in the end? Citi says they'll honor this benefit... I just hope I don't have to consolidate because I'll probably going into public health or primary care, hah. Thanks for advice.
Click to expand...

It has changed. Now: Citi Health Federal Loans. No more 6% reduction.

* Receive a 0.50% automatic interest rate reduction when you enter repayment.
* Receive an additional 0.25% interest rate reduction when you enroll in our auto-debit payment program.
* Get unlimited opportunities to earn your automatic rate reduction back if ever lost due to a late payment.

Fees:
* 1.00% origination fee (1.50% 07/01/07 - 06/30/08)
* 1.00% federal default fee
 
FenixTx said:
It seems that almost all the lenders that had a 0% origination fee, now have one that is somewhere between 1-3%. This is quite discouraging, but I guess now I might as well just choose one, because most have similar back end benefits.[/QUOT

Go with Discover no fees .... no origination fee and no default fee 6.55% (grad) and .25% for auto pay this is the only one I have found. they just added 1500 new schools. 8.00% for grad plus
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