Chase Student Loans and Refinancing Options – 2020 Essential Guide

Chase Student Loans and Refinancing Options – 2020 Essential Guide.

Chase Student Loans and Refinancing: Chase Bank, JPMorgan Chase’s retail arm, is a large global financial services institution best known for its credit cards, personal and corporate deposit accounts and mortgage loans. What many don’t know is that Chase Bank used to sell eligible borrowers student loans, but that has been a short-lived attempt.

In 2012, the bank began offering student loans to existing Chase customers, and in 2013, it decided to stop selling Chase student loans entirely.

Chase Student Loans and Refinancing 2020:

Chase also provides its clients with a variety of products and services, but previous student loan borrowers with Chase were transferred to another servicer. Here’s what you need to know about Chase student loans if you were a previous customer.

Where did Chase student loans go?

With the rapidly rising cost of higher education, many financial services companies have opted to get into the student loan market. Although federal loans still make up the majority of student aid, private student loans have become a viable choice when federal loans aren’t enough.

While Chase Bank had made some headway in the space, its decision to pull out of the market in 2013 came as a bit of a shock.

Chase offered three explanations for no longer offering private student loans, or servicing federal student loans. These included increased competition from other financial services companies, tougher regulatory scrutiny, and lack of growth in the market.

Chase Bank seems to have redirected its attention to other, possibly more profitable consumer products and services, such as rewards and luxury credit cards. In addition to stopping its private student loan business, Chase also pulled out of the personal lending arena to focus its efforts elsewhere.

What if I Already Have a Chase Student Loan?

Borrowers who had Chase student loans prior to 2013, the owed debt did not disappear. Instead, Chase sold its student loan portfolio to Navient, a student loan servicer. As a borrower, you should have received notice of your new loan servicer and loan transfer.

What can you do with your current Chase student loans?

Chase’s student loan page doesn’t offer any advice or options for your student loans. Since Chase student loans have dropped off the map, here are your options depending on whether you had federally-guaranteed student loans or private student loans.

Options for federally-guaranteed Chase student loans

Federal student loans carry more borrower protections than private student loans. If you have one of these student loans originally from Chase, you can:

  • Consolidate your loans into a Direct Consolidation Loan
  • Apply for an income-driven repayment plan
  • Look into student loan forgiveness programs, including Public Service Loan Forgiveness

To secure these federal protections, don’t refinance federal student loans into a new private student loan unless it’s necessary. Research the above options first to see if they’re helpful for your situation.

Options to refinance your private Chase student loans

If you have Chase private student loans with Navient and don’t love working with the new servicer or the rates it currently offers, consider refinancing your private student loans. Solid reasons for refinancing your private student loans include:

  • A fixed interest rate
  • A lower interest rate
  • A shorter loan term for faster pay off (ideally not a longer loan term to avoid paying more in interest)
  • Working with a new loan servicer

Be sure to check your credit score, shop around and compare offers before deciding on the company you’ll refinance your chase student loans with.

Alternatives to Chase Student Loans

Alternatives to Chase Student Loans

There are several alternatives to Chase Bank for borrowers who are currently seeking a private loan to help fund their educational expenses. Check out our Best Private Student Loans page for the easiest place to start.

Remember that you’ll need either a good credit score or a creditworthy co-signer to be eligible for these programs. Here are a few programs to consider for private loans.

Discover Student Loans

As one of the largest providers of private student loans, Discover Student Loans can be a good choice for both undergraduate and graduate students. With Discover, borrowers have access to funding for up to 100% of school-certified costs1, with or without a cosigner. Discover offers both fixed and variable rates, in-school and deferred repayment options, as well as a simplified application process completed online.

College students who took out a loan with Discover also have the option to earn rewards for good grades, and they pay no origination, application, or prepayment fees.

Sallie Mae Student Loans

Sallie Mae is another private lender that offers loans for qualified borrowers. With the company’s Smart Option student loans, borrowers can finance up to 100% of the school-certified cost of attendance. Sallie Mae offers both variable and fixed interest rate loans, up to 100% of school-certified cost of attendance at an accredited college or university.

There are no origination fees, application fees, or prepayment penalties, and borrowers may qualify on their own or with the help from a cosigner. In addition, required monthly payments don’t begin until after graduation.

Citizens Bank Student Loans

Citizens Bank is a national financial services company offering private student loans. Through the bank, borrowers have access to fixed or variable interest rate loans, with current rates starting as low as 2.90%. Borrowers can use a cosigner to strengthen their application approval chances, and multi-year approval is available for those who qualify.

Individuals who want an education loan from Citizens Bank can apply easily online, and opt for immediate or deferred repayment plans depending on their needs.

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FAQS 

What if I Already Have a Chase Student Loan?

Borrowers who had Chase student loans prior to 2013, the owed debt did not. Instead, Chase Bank sold its loan portfolio to Navient, a student loan servicer better equipped and more willing to manage the student loan borrowers’ needs.

Why Don’t Chase Bank Student Loans Exist Anymore?

Chase offered three explanations for no longer offering private student loans, or servicing federal student loans. These included increased competition from other financial services companies, tougher regulatory scrutiny, and lack of growth in the market.

What if I Already Have a Chase Student Loan?

Borrowers who had Chase student loans prior to 2013, the owed debt did not disappear. Instead, Chase sold its student loan portfolio to Navient, a student loan servicer. As a borrower, you should have received notice of your new loan servicer and loan transfer.

Are there Alternatives to Chase Student Loans

For borrowers who are currently in search of a private loan to help fund their educational expenses, there are several alternatives to Chase Bank. A few include; Discover Student Loans, Sallie Mae Student Loans, Citizens Bank Student Loans

Bottom line

Chase Student Loans and Refinancing 2020: Bottom line

Chase offered some of the most competitive student loans out there for a brief few years. If you haven’t already applied for federal financing, you might want to do that before you look at private student loans. Otherwise, these are some alternatives to Chase student loans if you’re looking to refinancing, compare offers quickly, or for a one-stop-shop for all of your student loan needs.

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