Fed Financial
Chase Student Loan?
My daughter, a freshman, applied for and received a private student loan from Chase bank. I just read over the terms and was horrified. When repayment begins on a $5000 loan she will owe $23,000. Is that normal? My first reaction was send that money back ASAP, but she's already paid her housing with most of it. I need some advice for people who have had this type loan. Am I allowed to pay on this loan now or do I have to wait till she graduates. This is all new to me.
Public Comments
- That doesnt sound right, though the interest rate could be high based on your daughter's co signer and credit history. I would touch base with Chase to review her options. You should have no issues with paying it off early therefore reducing the principal and ultimately the total loan amount. If the cosigners credit was good (were you the cosigner?) there might not have been any fees associated with this loan. Again, call Chase and get the details. Each lender will have different benefits and terms. The final amount that you mentioned could be a worse case scenario. Good luck. Also in the future, a PLUS loan in mom or dad's name would provide a better interest rate, but the typical repayment term is ten years. With most alternative loans the co signer can be released from the loan after a certain number of on time payments. (I am assuming there was a cosigner since your daughter is a freshman and probably doesnt have sufficient credit on her own). Good Luck. Also if you arent able to talkto anyone at Chase, call the school. Though they probably wont know the details on the private loan they should be able to get in touch with their Chase lender rep to get the details you need.
