by Katerina Nikolas

Created on: February 04, 2010   Last Updated: January 27, 2011

Embarking on college life often involves taking on debt in the form of student loans. Whilst Federal student loans, scholarships and grants can cover most of the necessary costs of a college education, there is often a shortfall between these and the full amount of funds needed for  school. If the parental coffers aren’t adequate enough to fulfill the difference, then students need to look to private student loans. Chase offers private student loans which are a viable option.

This could well be the first time you have ventured into the financial institutions or banks needing a loan, but it needn’t be a daunting prospect. You will find that loans are easy to come by, as students have the potential for high salaries after graduation, which will make students generally good borrowers.

For the first time borrower it cannot be stressed enough that you must understand the details of any loan you undertake, as a student loan will be a long one, and not one you want to regret signing. It is essential that you read and understand the small print, ask questions and seek advice if necessary.

Chase is one of the largest lenders of student loans and their documentation is easily understandable. The details are not hidden away in the small print. Just as with the federal loans you will have applied for first, there are certain conditions the student must meet to obtain a Chase private loan. Proof of school accreditation is required, and proof of at least half time enrollment in a course. The funds will be paid directly to the school and the school will be the one to determine the amount you can borrow privately.

The big difference between a private and federal loan is that the private one is subject to a credit check. Unless the student has already been able to establish a good credit history of their own then a Chase loan will require the loan endorsing by a co-signer. A parent or relative usually undertakes to do this but they should also know exactly what endorsing a loan means.

A Chase loan is very explicit in spelling out terms for a co-signer. Once the student has graduated and made 36 consecutive uninterrupted payments then the co-signer can be released from the loan obligation, thus they are not looking at a commitment for the full term of the loan if conditions are met. The benefit of having a co-signer is that it will also give the student a lower interest rate on the loan. If the agreed payments are met promptly

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