Chase Student Loans Review: Alternatives to Consider

Chase Bank, a retail arm of JPMorgan Chase, is a large, global financial services institution best known for its credit cards, personal and business deposit accounts, and mortgage loans.

What many don’t know is that Chase Bank used to offer student loans to qualified borrowers, but that was a short-lived endeavor. The company limited the availability of private and federally-funded student loans to current Chase customers in 2012. In 2013, the financial institution made the decision to stop offering Chase student loans altogether.

Chase still provides a variety of products and services to its customers, but previous student loan borrowers with Chase have been moved to a different servicer. Here’s what you need to know about Chase student loans if you were a previous customer.

In this review:

• Why Doesn’t Chase Offer Student Loans Anymore?
• What About Existing Chase Student Loans?
• Alternatives to Chase Student Loans

Why Doesn’t Chase Offer Student Loans Anymore?

With the rapidly rising cost of higher education, many financial services companies have opted to get into the student loan market. While federal loans still make up the majority of funding for students, private student loans have become a viable choice for those who need to close the financial aid gap 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 About Existing Chase Student Loans?

For borrowers who had Chase student loans prior to 2013, the owed debt did not disappear. Instead, Chase Bank effectively transferred or sold its loan portfolio to servicers better equipped and more willing to manage the student loan borrowers’ needs.

Borrowers would have received notice detailing the transfer, including which servicer took over their loan, contact information for that servicer, and how to make payments on the loan from that point forward. The majority of Chase student loans were transferred to Navient.

More About Navient

Navient is one of the most prominent student loan servicers in the country, offering payment and loan management services to borrowers with federal and private student loans. Navient currently manages more than $300 billion in student loan balances, covering more than 12 million student loan borrowers.

The company offers online servicing, help over the phone, and via mail. Borrowers who had Chase student loans that were transferred to Navient can now complete all their service requests, payments, repayment plan selections, and deferment or forbearance requests directly through Navient.

Refinancing Your Loans

If you would like to change your servicer away from Navient, or would like to see if you could pay less on your Chase student loans, you could look into student loan refinancing.

If you are approved to refinance student loans (including those from Chase), you will receive a new loan with a (hopefully) lower interest rate and new repayment terms.

Like new private student loan lenders, refinance lenders will consider your credit history and income when deciding whether you are eligible and what your interest rate should be.

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.

Note that in order to be eligible for these programs, you will either need to have a good credit score or a creditworthy cosigner. Here are a few private loan programs to consider.

Discover Student Loans

As one of the largest providers of private student loans, Discover can be a good choice for both undergraduate and graduate students. With Discover, borrowers have access to funding for up to the full cost of attendance¹, with or without a cosigner, with either variable or fixed interest rate loans.

Discover offers both 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 the cost of their education.

Sallie Mae offers both variable and fixed interest rate loans, up to the full 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 4.48%.

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.

Discover Student Loan Disclosures

1. Aggregate loan limits apply.