FEDERAL STUDENT LOAN CONSOLIDATION VS. PRIVATE STUDENT LOAN CONSOLIDATION
Federal student loans and private student loans can't be consolidated together because they are two different types of loans.
The difference between federal student loans and private student loans
Federal student loans, like Stafford and PLUS loans, usually have lower interest rates than private student loans and may include government-subsidized interest payments during qualifying periods of enrollment and deferment. Federal student loans have standard rates and fees that don't vary by lender, though borrower benefits may. Private student loans are designed to supplement federal loans when federal loans aren't enough to cover the entire cost of your education.
Two types of consolidation loans
All of your federal student loans can be consolidated into a federal consolidation loan and all of your private student loans can be consolidated into a Chase Private Consolidation Loan. This means that after consolidating your federal and private student loans separately, you'll only have two student loan payments each month.
Private student loan consolidation from Chase:*
- One monthly payment
- Variable interest rate
- Credit-based
- Minimum consolidation requirement of $7,500 and maximum of $150,000
Federal student loan consolidation:
- One monthly payment
- Fixed interest rate
- No credit check
Chase does not sell these loans to another lender.
Student loan consolidation may extend your repayment term, increasing your overall financial obligation. However, your monthly loan payments may be reduced. You can choose to prepay principal with no prepayment penalties, which reduces the overall cost of your loan.
This information was current as of 02/01/2010 and is subject to change. Contact Chase for the most up-to-date product terms.