chase select - Grace College

Grace College & Theological Seminary
Proposal
Craig Anderson
National Sales Director
Chase Student Loans
1 East Ohio Street
Indianapolis, IN 46277
Phone: (317) 236-5762
Fax: (317) 236-5787
E-mail: [email protected]
June 18, 2009
Charlette Sauders
Director of Financial Aid
Grace College & Theological Seminary
200 Seminary Drive
Winona Lake, IN 46590
Dear Charlette:
Chase is pleased to present you with the following information for the 2009-2010 academic year. At
Chase, we understand the importance of your role in evaluating lender information and
recommending the best lenders to your students and their families.
We also know that you’re busy with your #1 priority − helping your students and their parents − so it
is our goal to make the lender evaluation process as simple as possible for you. Enclosed is
information about Chase’s student loan offerings and the Chase services that are available to you,
your students and their parents, which feature:
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A 0.25% interest rate reduction for borrowers who elect to and have their monthly
payments automatically debited from their banking account
Online application and e-signature, with an integrated pre-approval process for creditbased loans
Loan processing through a top-tier originations platform that provides easy, hassle-free
loan processing
Web-based financial literacy resources, including the new “Knowledge for College”
video series available through www.ChaseStudentLoans.com
Chase continues to focus on creating innovative solutions to the unique problems our customers face
in these difficult times and is maintaining efforts to help the economy recover. Our core business is
supporting customers through our lending operations – and we have continued to lend responsibly.
We have extended approximately $150 billion in new credit to consumer and corporate customers in
the first quarter of 2009. We continue to meet the needs of creditworthy borrowers by practicing safe
and sound lending, helping to strengthen our economy and move it forward. We are confident that
even a highly adverse economic scenario would not compromise our overall strength and stability.
I encourage you to carefully review the information within this proposal and as you do, keep in mind
that your school and your students can count on Chase to provide premier service. If you have any
questions or if you need additional information, please contact Michelle Isaac, your Account
Manager, or feel free to call me personally. We look forward to your response to our proposal, as you
consider Chase as a recommended lender.
Sincerely,
Craig P. Anderson
Senior Vice President
National Sales Director
COMPANY OVERVIEW AND INTRODUCTION ............................................................................ 1
JPMORGAN CHASE QUICK FACTS ............................................................................................................................... 1
CHASE’S STUDENT LOAN DIVISION............................................................................................................................. 1
THE POWER OF CHASE: STABILITY AND SERVICE WITH INTEGRITY ..................................................................... 1
COMMITMENT TO THE CODE OF CONDUCT............................................................................................................... 2
CHASE SELECTSM PRIVATE STUDENT LOAN ........................................................................... 3
CHASE SELECT PRIVATE STUDENT LOAN – CURRENT PROGRAM HIGHLIGHTS ................................................. 3
CURRENT ELIGIBILITY REQUIREMENTS ..................................................................................................................... 4
CURRENT LOAN LIMITS ................................................................................................................................................. 4
APPROVAL AND APPLICATION PROCESS................................................................................................................... 5
CURRENT INTEREST RATES......................................................................................................................................... 5
CURRENT BORROWER BENEFITS ............................................................................................................................... 6
CURRENT REPAYMENT OPTIONS................................................................................................................................ 6
CHASE LOAN ORIGINATION AND SERVICING .......................................................................... 8
FEATURES AND BENEFITS OF CHASE’S LOAN ORIGINATION AND SERVICING PLATFORM ............................... 8
CUSTOMER SERVICE AND SUPPORT...................................................................................... 10
DEDICATED SUPPORT FOR YOUR SCHOOL............................................................................................................. 10
DEDICATED CUSTOMER SERVICE FOR YOUR STUDENTS .................................................................................... 10
ONLINE RESOURCES FOR SCHOOLS AND BORROWERS ...................................................................................... 11
SUMMARY .................................................................................................................................... 13
CHASE ANSWERS TO FREQUENTLY ASKED QUESTIONS ................................................... 15
ATTACHMENTS:
CHASE CUSTOMER SUPPORT FOR ACADEMIC YEAR 2009-2010
CHASE SELECT PRIVATE STUDENT LOAN PROCESSING REFERENCE GUIDE FOR ACADEMIC YEAR 2009-2010
CHASE SELECT PRIVATE STUDENT LOAN PROCESS FLOW CHART
CHASE SELECT PRIVATE STUDENT LOAN ONLINE APPLICATION PROCESS
COMPANY OVERVIEW
AND INTRODUCTION
JPMorgan Chase is a leading global financial services firm
with more than $2 trillion in assets and over $900 billion in
customer deposits, serving tens of millions of U.S.
consumers, including over 800,000 student loan
borrowers. Our financial strength, stability and diversity,
forged over 200 years, allow us to sustain our commitment
to customers in both good and bad economic times.
JPMorgan Chase Quick Facts
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JPMorgan Chase operates in more than 60 countries and has over 180,000 employees.
JPMorgan Chase serves millions of U.S. consumers and many of the world’s most
prominent corporate, institutional and government clients.
JPMorgan Chase is a leader in investment banking, financial services for consumers,
small business and commercial banking, financial transaction processing, asset
management and private equity. The U.S. consumer banking businesses serve customers
under the Chase brand, including home finance, auto finance, credit cards and education
finance.
Chase’s Student Loan Division
JPMorgan Chase Bank, N.A. is a federally chartered, national banking association and is a wholly
owned subsidiary of JPMorgan Chase & Co. Chase’s Student Loan division supports and markets the
Chase brand for education loans. In 2008 we originated nearly $7 billion in student loans. Chase
employs more than 900 staff to support our student loan business − with primary sites in Madison,
Mississippi; Tampa, Florida; and Indianapolis, Indiana (headquarters).
The Power of Chase: Stability and Service with Integrity
Our experience, financial stability and integrity − three characteristics that we call The Power of Chase −
are backed by a 40-year track record in the student loan industry, a servicing portfolio of more than
$16 billion in student loans to more than 800,000 borrowers and our voluntary early adoption of the
New York State Attorney General’s Student Loan Code of Conduct.
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WE HAVE THE EXPERIENCE TO SERVE YOU AND YOUR STUDENTS. Chase,
a leading
provider of education loans, has more than 40 years of experience helping students and
their families achieve their education goals.
CHASE PROPOSAL FOR GRACE COLLEGE & THEOLOGICAL SEMINARY 1 •
Particularly in these uncertain
economic times, students and parents can rely on Chase’s strength and stability − built
during more than 200 years as a leading U.S. financial institution.
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INTEGRITY DRIVES EVERYTHING WE DO. Chase encourages students and their parents
to borrow wisely and responsibly. Our marketing materials advise students to apply first
for scholarships and grants and then federal loans before applying for private loans. In
addition, we provide students and parents with financial literacy tools, and we always
give customers the choice of opting out of our direct marketing efforts.
WE HAVE DEMONSTRATED STRENGTH AND STABILITY.
Commitment to the Code of Conduct
Chase is proud that we were one of the early adopters of the New York State Attorney General’s
Student Loan Code of Conduct in 2007. Our early and voluntary adoption of these principles
demonstrates our commitment to being the best student lending business in the industry, and
emphasizes our desire to conduct ourselves with the highest ethical standards.
As a result of our commitment to these important practices, we believe that students and their
parents will benefit. In order to ensure Chase’s compliance with the Code of Conduct, please be
aware of our following commitments:
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Chase does not participate in revenue sharing with, make payments to, or otherwise
provide gifts or incentives to schools in exchange for loan volume or preferred lender
status.
Chase will not provide gifts or expense reimbursement to schools or school employees.
Chase will not print customized materials or host co-branded preferred lender lists or
websites on behalf of schools. Chase will construct a welcome page on our
ChaseStudentLoans.com site to welcome students who link from a school’s website to
www.ChaseStudentLoans.com.
Chase will fully and prominently disclose via our welcome page and school lender lists,
as appropriate, any agreements we have to sell Chase loan(s).
The principles underlying the Code of Conduct − transparency in business practices and elimination
of potential conflicts of interest − are important business principles that guide Chase’s daily activities
and we believe students and their parents will benefit from our commitment.
CHASE PROPOSAL FOR GRACE COLLEGE & THEOLOGICAL SEMINARY 2 CHASE SELECTSM PRIVATE
STUDENT LOAN
For Academic Year 2009-2010
The Chase Select Private Student Loan is a credit-based,
school-certified, private student loan for undergraduate,
graduate and health professions students. It can be used
for any qualified education-related expense and can fill the
gap of expenses not covered by federal loans or other aid.
Chase Select Private Student Loan – Current Program Highlights
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Interest rates starting as low as LIBOR + 3.65% for students who apply with a qualified
cosigner.
Borrowers currently pay no origination or repayment fees.
Chase does not impose an increased “default interest rate” in the event of late payments
Chase Select Private Student Loans can be used to pay for tuition, living expenses,
books and a computer.
Borrowers currently can receive a 0.25% interest rate reduction for making payments
through our auto-debit payment program.
Student applicants and, as applicable, their cosigners may receive a conditional approval
decision while online or on the phone, usually within seconds.
Effective June 5, applicants will be apprised of their interest rate, at the time of
conditional approval, prior to their signing of the note.
E-signature is available through our streamlined application process.
Borrowers have 24-hour online access to their loan status information.
Flexible repayment options allow borrowers to defer all payments until after graduation,
with a six-month grace period.
A cosigner release option is available after the borrower makes any 36 consecutive
monthly on-time payments of principal and interest any time after repayment begins and
other applicable requirements are met.
Several school certification options, including online through AppWorks Web, ELM
and other school certification methods.
CHASE PROPOSAL FOR GRACE COLLEGE & THEOLOGICAL SEMINARY 3 Current Eligibility Requirements
Chase utilizes a proprietary underwriting approach to determine student and cosigner eligibility for
Chase Select Private Student Loans. To be eligible to apply for the Chase Select Private Student
Loan, student borrowers must:
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Be enrolled in a degree or certificate program,
Be a U.S. citizen or permanent resident (or obtain a cosigner who meets such criteria)
Have a valid Social Security Number
Be 18 or the age of majority as defined by their resident state
Students can be enrolled full time, half time or less than half time, and current enrollment is not
required to apply for funds to pay previous school balances less than 12 months old. Satisfactory
Academic Progress is currently not required.
Current Loan Limits
We encourage students to first apply for scholarships, grants and federal loans before applying for the
Chase Select Private Student Loan. Students who need additional funds can annually borrow as little
as $500 and up to the cost of attendance (minus other aid) as certified by the school. Current
Chase Select Private Student Loan aggregate loan limits are:
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$120,000 for undergraduate students
$180,000 for graduate students
$250,000 for graduate health professions students
CHASE PROPOSAL FOR GRACE COLLEGE & THEOLOGICAL SEMINARY 4 Approval and Application Process
Students and cosigners can apply online at www.ChaseSelectLoans.com or by calling 1-866-306-0868.
The Chase Select Private Student Loan application process is quick, easy and hassle-free:
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Student applicants and, as applicable, their cosigners may receive a conditional approval
decision while online or on the phone, usually within seconds.
Upon conditional approval, eligible student applicants and, as applicable, their cosigners
can complete and e-sign their application online.
Borrowers can easily check the status of their application online, 24 hours a day, seven
days a week. They can also call to speak with a Chase customer service representative to
find out the status of their application.
Applicants will receive e-mail notifications when documents have been received,
reviewed and sent to the school for certification, as well as when the loan has been
certified.
Students that apply for the Chase Select Private Student Loan on their own and are denied may
choose to reapply with a qualified cosigner. Students who apply with a qualified cosigner improve
their chances for approval and typically obtain a lower interest rate. Both students and cosigners may
apply online or by phone and may be able to take advantage of the ease of e-signing their online
application. Please see the Chase Select Private Student Loan Online Application Process attachment for
additional details and instructions.
Current Interest Rates
The rates shown in the chart below are applicable for borrowers whose loans are approved on or
after May 23, 2009 and are subject to change. Given the slowing economy and challenging credit
environment, Chase must continually reassess its private loan lending requirements, including offered
interest rates and other product terms, which are subject to change at any time over the course of the
2009-2010 academic year. We will notify you of any rate or other changes, and you can always
contact our School Support representatives at 877-968-7331 to confirm our most current rates.
STUDENT WITH A QUALIFIED COSIGNER*
TIER 1 – LIBOR + 3.65%
TIER 2 – LIBOR + 6.10%
TIER 3 – LIBOR + 8.50%
TIER 4 – LIBOR + 10.25%
STUDENT ONLY PRICING*
LIBOR + 9.00%
* Margins shown are effective for loans approved on or after
May 23, 2009 and are subject to change.
CHASE PROPOSAL FOR GRACE COLLEGE & THEOLOGICAL SEMINARY 5 Current Borrower Benefits
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is available to borrowers who enroll to and make
their principal and interest payments automatically from a bank account. The interest
rate reduction will not lower the monthly payment amount, but will reduce the interest
that accrues, thereby reducing the total amount repaid.
COSIGNER RELEASE is available after the borrower makes any 36 consecutive monthly
on-time payments of principal and interest, at any time after repayment begins. Unlike
some other lenders’ cosigner release requirements, a Chase Select Private Student Loan
borrower who does not make their first 36 consecutive loan payments on time does not
lose eligibility for the cosigner release.
A 0.25% INTEREST RATE REDUCTION
Current Repayment Options
Currently, students have up to a 20-year repayment term for loan amounts of less than $30,000 and
up to a 25-year repayment term for loan amounts of $30,000 or more. Borrowers can choose from
the following repayment options:
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Repayment of principal and interest begins 15 to 45 days
after the last disbursement date. The borrower may change to deferred principal and
interest payments upon request.
DEFERRED PRINCIPAL AND INTEREST: Principal and interest repayment begins the
earlier of six months after the student borrower graduates or withdraws or 5½ years
after the first disbursement date.
INTEREST ONLY: Interest payments begin 15 to 45 days after the last disbursement date,
and payments of principal and interest begin six months after graduation or when the
student is no longer enrolled. The borrower may change to deferred principal and
interest payments upon request.
IMMEDIATE REPAYMENT:
DEFERMENT
For undergraduate and graduate borrowers who choose to defer principal and interest payments until
after the grace period ends, the deferment period end date is the earlier of six months after the
student borrower graduates or ceases to be enrolled, or 5 ½ years after the first disbursement date.
For undergraduate and graduate borrowers who choose to make interest-only payments,
principal payments will be deferred while the student is in school up to 5 ½ years after the first
disbursement date.
There are no deferment options for borrowers who select an immediate repayment option.
CHASE PROPOSAL FOR GRACE COLLEGE & THEOLOGICAL SEMINARY 6 FORBEARANCE
Our current forbearance policy for Chase Select Private Student Loans is reflected below. Please note
that this policy is currently under review and may be changed in the near future.
Forbearance is granted at Chase’s discretion and in minimum increments of one month and
maximum increments of six months. Forbearance can be used up to a maximum of six months
during any 12-month period. The maximum amount of forbearance allowed is 12 months during the
life of the loan.
Hardship forbearance can be requested by borrowers who are experiencing extenuating
circumstances that temporarily preclude them from making payments. Forbearance may be granted
for the following, among other, reasons:
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Unemployment or underemployment
Illness or short-term disability
Parental leave
Financial emergency
Natural disasters, acts of terrorism or acts of war
Please Note: The Chase Select Private Student Loan terms reflected herein are accurate as of the
date of this response. Offered borrower benefits, interest rates and other loan product terms and
features are subject to change at Chase’s discretion.
CHASE PROPOSAL FOR GRACE COLLEGE & THEOLOGICAL SEMINARY 7 CHASE LOAN ORIGINATION
AND SERVICING
Chase offers a top-tier origination and servicing platform
that allows you and your students to benefit from
streamlined loan processing.
Features and Benefits of Chase’s Loan Origination and Servicing Platform
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ONGOING ENHANCEMENTS: Having
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EASY ONLINE ACCESS TO LOAN INFORMATION:
our own internal platform allows us to make
enhancements that will benefit our school and borrower customers. It also enables us to
set the schedule to prioritize our continuous improvement activities. We strive to
improve our customer experience by adding functionality that:
o allows us to communicate more proactively
o increases our processing speed
o removes unnecessary documentation
Borrowers have the ability to log in at
www.Chase.com and access all of their Chase accounts − including their student loan
account − quickly and easily. Via this online account access, students and parents are
able to make payments and download frequently requested forms.
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SINGLE POINT-OF-CONTACT:
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QUICK RESOLUTION OF ISSUES: Managing
When loans are originated and serviced on Chase’s
internal platform, rather than through a third-party servicer, we have real-time access to
all loan data. From application throughout repayment, both you and your students will
receive enhanced, one point-of-contact, customer service throughout the entire life of
the loan.
our own technology gives us access to
troubleshoot and resolve any problems as they happen, without delay. We have the
technical resources to open up transaction files and to do the step-by-step research
required to promptly and efficiently resolve any issues that may arise.
CHASE PROPOSAL FOR GRACE COLLEGE & THEOLOGICAL SEMINARY 8 In addition, your financial aid office can count on:
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Integration with several loan delivery systems and disbursing agents
Online application processing through AppWorks Web
Reporting options that help you better manage the application process
Your students will benefit from:
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Comprehensive online applications that include online approval and e-signature
Online access to loan information, from application throughout repayment
Ability to make and manage payments online
Your Chase Account Manager, Chase Technical Support Specialists and School Support team are
ready to work with your financial aid office to identify the processing scenario that best meets the
needs of your office and the students and parents you serve. While it is up to your office to
determine the application flow that best complements your current processes, we suggest the
following processing profile for the upcoming academic year.
RECOMMENDED CHASE SELECT PROCESSING PROFILE
Loan Delivery/File Transfer System
Great Lakes ScholarNet
Disbursing Agent
Great Lakes CDS
Disbursing Method
Electronic Funds Transfer
Once you have determined how you wish to process Chase Select Private Student Loans, Chase’s
team will work with you to ensure that your profile is set up properly.
CHASE PROPOSAL FOR GRACE COLLEGE & THEOLOGICAL SEMINARY 9 CUSTOMER SERVICE AND
SUPPORT
Chase Student Loans employs hundreds of customer
service professionals whose primary goal is to continually
provide you and your students with prompt, courteous
service and accurate, up-to-date information.
Dedicated Support for Your School
The following team is committed to supporting Grace College & Theological Seminary’s financial aid
office by providing prompt responses to inquiries and dedicated assistance with issue resolution:
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Michelle Isaac is your dedicated Account Manager. Michelle
is supported by Kevin McKeown. Kevin has over 13 years of education finance−related
experience and serves as Grace College & Theological Seminary’s Chase Student Loans
management contact. Michelle can be reached toll-free at 1-888-487-4404 ext. 6585.
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These representatives are available to assist
Grace College & Theological Seminary financial aid office personnel with questions and
problem resolution, Monday through Friday from 8:00 a.m. – 9:00 p.m. ET. The School
Support Team may be reached by calling 1-877-968-7331 or by e-mail at
[email protected].
ACCOUNT MANAGEMENT:
SCHOOL SUPPORT REPRESENTATIVES:
Dedicated Customer Service for Your Students
We offer Chase borrowers several ways to contact us. Please refer to the Chase Customer Support
attachment for phone, mail, e-mail and website information.
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Customer service is available via phone, starting at 8 a.m. ET and extending until 9 p.m.
ET on weeknights. Beginning May 1, customer service for Chase Select Private Student
Loans will be available via phone seven days a week.
Borrowers can access their loan information and submit questions via e-mail through
our website 24 hours a day, seven days a week.
CHASE PROPOSAL FOR GRACE COLLEGE & THEOLOGICAL SEMINARY 10 Online Resources for Schools and Borrowers
Chase’s websites offer comprehensive information about the financial aid process and Chase’s loan
products and services. In addition to our investments in new technology that speeds up the
application, credit decisioning and servicing processes, the following potential enhancements are
currently being evaluated:
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CHASE SELECT SCHOOL CERTIFICATION REQUESTED E-MAIL NOTIFICATION:
AppWorks will send an e-mail notice when an application hits “awaiting certification”
status.
NEW ONLINE SCHOOL PORTAL: Through this site, schools will be able to search for
loan information by student, download borrower-level reports and certify loans.
ENHANCED CHASE SELECT E-SIGN PROCESS: Cosigners will have the ability to
complete and e-sign the application on their own, in a session separate from the
borrower.
FOR SCHOOLS
When you process Chase Select Private Student Loans via AppWorks Web, your office can access
Chase Select Private Student Loan information online through AppWorks Web at https://Chase.vtek.com/AppWorks. Administrators can view loan record detail, including:
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Requested loan amount for Chase Select Private Student Loans
Application status (e.g., awaiting certification, awaiting disbursement, awaiting borrower
information, or loan canceled)
Account history
AppWorks Web allows schools to perform a full range of transactions, including:
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Online certification of Chase Select Private Student Loans
Application retrieval, with the ability to view and print the application
Loan data updates
Loan transactions, such as cancellations, reinstatements, loan amount increases, loan
terminations and reversals of loan terminations
Disbursement transactions, such as disbursement date changes and hold/release
processing
CHASE PROPOSAL FOR GRACE COLLEGE & THEOLOGICAL SEMINARY 11 FOR BORROWERS
Through our websites, Chase provides the detailed information and interactive tools students and
families need — from planning for college, to understanding financial aid and loan options, through
managing repayment of their student loans.
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www.ChaseSelectLoans.com — This site provides information about Chase’s schoolcertified private loan − the Chase Select Private Student Loan.
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www.CSLServicing.com — Chase Student Loan Servicing’s website provides borrowers
with access to their loan information during repayment.
Families can get the information they need before applying for a loan. Through our answers to
Frequently Asked Questions and our Help sections, families can:
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Learn about the various financing options that exist, including information on how to
search for scholarships and grants
Better understand their loan options, including potential tax benefits and the features of
Chase Select Loans
Link to resources such as the FAFSA online, NSLDS and the Department of Education
Use calculators to estimate college costs, budgets and loan costs, such as monthly
payments and the interest-related cost of deferment or forbearance
Students who choose to apply for the Chase Select Private Student Loan can easily manage the loan
application process by taking advantage of:
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Online application and e-signature for Chase Select Private Student Loans
An e-mail link to cosigners for convenient authentication and e-signature
Online access to information about their application status and progress
Online ability to maintain and update personal information
Throughout repayment, borrowers can manage their accounts to ensure they are able to successfully
repay their Chase student loans.
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View accounts, including payment activity
Maintain and update most of their personal information
Set up automatic payments
Access downloadable forms, including deferment forms
Apply for Hardship Forbearance
Chase recently enhanced the online experience for student loan borrowers who also have other
accounts with Chase. Borrowers can now use a single log in at www.chase.com and access all of their
Chase accounts − including their student loan account − quickly and easily.
CHASE PROPOSAL FOR GRACE COLLEGE & THEOLOGICAL SEMINARY 12 SUMMARY
Chase is pleased to offer Grace College & Theological Seminary, its students and their parents a
complete private loan origination, funding and servicing solution, directly through Chase. As you
evaluate Chase as a recommended lender, we encourage you to consider the following:
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Chase’s top-tier origination and servicing platform provides easy, hassle-free, loan
processing and online solutions that can complement the preferred processes you
already have in place.
Our school-certified Chase Select Private Student Loan currently offers no origination
or repayment fees and competitive interest rates.
Students and parents can rely on Chase’s strength and stability, built during more than
200 years as a leading U.S. financial institution.
On the following pages you will find a compilation of answers to Frequently Asked Questions that we
have received from schools as part of the RFP process, as well as attachments that include important
contact and loan processing information. We look forward to your response to this proposal as you
consider Chase as a recommended lender for Grace College & Theological Seminary.
Important Information: Chase currently holds and does not sell its Chase Select Private Student
Loans. Terms and conditions apply. Loans are subject to submission of a completed application,
credit approval and other required documentation and verification, as applicable. The borrower
benefits reflected in this proposal response are offered to Chase Select Private Student Loan
borrowers attending Grace College & Theological Seminary during the stated Academic Year and are
not contingent upon Chase being selected for placement on Grace College & Theological Seminary’s
preferred lender list. Nothing herein shall be construed as an agreement on the part of Chase to make
loans available to or on behalf of Grace College & Theological Seminary students and Chase retains
complete authority and discretion with regard to whether to provide such loans. Offered borrower
benefits, interest rates and other loan product terms and features are subject to change at Chase’s
discretion.
CHASE PROPOSAL FOR GRACE COLLEGE & THEOLOGICAL SEMINARY 13 Note Regarding Public Disclosure: Chase requests that Grace College & Theological Seminary
consult with Chase and obtain Chase’s consent before issuing any press release or other public
announcement with respect to Chase’s submission of a response to this Request for Information or
Chase’s selection as a “preferred” or “recommended” lender by Grace College & Theological
Seminary, and that Chase be afforded the opportunity to review and comment upon any such public
announcement prior to its release.
© 2009 JPMorgan Chase & Co. All rights reserved.
CHASE PROPOSAL FOR GRACE COLLEGE & THEOLOGICAL SEMINARY 14 CHASE ANSWERS TO
FREQUENTLY
ASKED QUESTIONS
Please Note: The responses to these frequently asked questions are accurate as of the date of this
proposal response only and are subject to change.
GENERAL QUESTIONS
What is your company’s mission statement?
Chase is committed to assisting students and their families achieve their educational goals through a
variety of financial education resources, including competitively priced student loan products.
Please provide a summary of your company’s history.
JPMorgan Chase & Co. (NYSE: JPM), founded in New York in 1799, is a global financial services
company with operations in more than 60 countries. The firm is built on the foundation of nearly
1,000 predecessor institutions that have come together over the years to form today’s company. Our
corporate history is intertwined with innovations in finance and the globalization of the world
economy. Key transactions include:
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In 1996, Chase Manhattan Corp. merged with Chemical Banking Corp., creating what
was then the largest bank holding company in the United States.
In 2000, J.P. Morgan & Co. merged with Chase Manhattan Corp., in effect combining
four of the largest and oldest money center banking institutions in New York City (J.P.
Morgan, Chase, Chemical and Manufacturers Hanover) into one firm called J.P. Morgan
Chase & Co.
In July 2004, the merger of J.P. Morgan Chase & Co. and Bank One Corp. formed
today’s JPMorgan Chase & Co.
In September 2008, JPMorgan Chase acquired Washington Mutual Bank’s assets. This
acquisition created, at that time, the largest U.S. depository institution, with over $900
billion of customer deposits and provides Chase with a significant banking presence in
major new markets, including California, Florida, Oregon, Washington, Georgia, Idaho
and Nevada.
CHASE PROPOSAL FOR GRACE COLLEGE & THEOLOGICAL SEMINARY 15 To view a complete history of all Chase mergers and acquisitions, please visit
http://www.jpmorganchase.com/cm/cs?pagename=Chase/Href&urlname=jpmc/about/history.
Is your company a subsidiary or does it have any subsidiaries?
JPMorgan Chase Bank, N.A. is a federally chartered, national banking association and is a wholly
owned subsidiary of JPMorgan Chase & Co. Chase’s Student Loan division supports and markets the
Chase brand for student loans. Chase Student Loan Servicing, LLC (CSLS) is the servicing arm of
Chase’s Student Loan division.
Does your company have any affiliated student loan lenders?
No. JPMorgan Chase Bank, N.A. does not have any affiliated student loan lenders.
Please provide a summary of any mergers/acquisitions with respect to Chase’s
Student Loan business.
Chase’s student loan business has been enhanced by the following mergers/acquisitions:
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In 2004, Chase merged with Bank One, which brought together two industry-leading
student lending organizations.
In 2006, Chase acquired Collegiate Funding Services (Fredericksburg, Virginia), which
had acquired SunTech Servicing (Madison, Mississippi) two years prior.
In 2007, Chase acquired certain of Nelnet’s Indianapolis, Indiana-based operations and
retained approximately 150 former Nelnet employees.
Are there any pending mergers/acquisitions involving your organization?
Chase deems information related to potential mergers or acquisitions to be proprietary and
confidential. There are, however, no publicly announced pending transactions involving Chase’s
student loan business.
Describe your source and stability of capital to fund student loans.
Chase Student Loans relies on its parent bank (JPMorgan Chase Bank, N.A.) as a source of capital.
JPMorgan Chase Bank has assets of over $2 trillion and deposits in excess of $900 billion.
How will Chase comply with the new private loan disclosure requirements
mandated by the Higher Education Opportunity Act of 2008?
Chase complies with all laws applicable to its student lending activities. We will provide borrowers
and schools with all disclosures and information required by the Act and its implementing
regulations, within the mandated time frames.
CHASE PROPOSAL FOR GRACE COLLEGE & THEOLOGICAL SEMINARY 16 Do you market or cross-sell other products and services to your student loan
borrowers?
Chase, like many other lenders, from time to time conducts mass mailings offering various Chase
products and services to its existing customer base or to prospective new customers. While these
mailings are typically sent to a large general population, and not targeted to students attending any
particular school, they may inevitably include some Grace College & Theological Seminary students
within the population mailed. Additionally, under Chase’s Privacy Policy, Grace College &
Theological Seminary Chase borrowers can opt out from any such solicitations. Please note, Chase
has currently suspended its direct to consumer private student loan offering.
Do you share the names of student or parent loan borrowers with affiliates or third
parties?
Chase customers have choices regarding information sharing and are provided the ability to choose
not to have their information shared. Chase’s Privacy Policy is sent to customers when they open a
new account and also sent to current customers yearly. Chase’s complete Privacy Policy is available at
www.Chase.com/privacy.
One of Chase’s primary goals is to keep information about customers private and secure. To provide
services and to help meet our customers’ needs, Chase collects information about its customers from
various sources, primarily from customer requests for our products or services and from information
about transactions with us and with others.
Subject to the right of Chase customers to opt out:
•
•
•
Chase may share information about its customers within its family of companies as
required or permitted by law.
Information may also be shared with service providers and financial companies outside
of Chase’s family of companies, as permitted by law.
Information about customers may also be shared with non-financial institutions outside
of Chase’s family of companies as permitted by law.
This information may also be shared to protect against fraud, respond to a subpoena, service your
account, report to a credit bureau and with the customer’s consent.
CHASE PROPOSAL FOR GRACE COLLEGE & THEOLOGICAL SEMINARY 17 What is your organization’s position on the privacy and confidentiality of
borrower-specific information?
Protecting our customer’s privacy and borrower-specific information is one of our core values. Chase
complies with all applicable laws and regulations regarding the security of borrower information.
Chase proactively develops and provides industry-leading safeguards that optimize client security
without sacrificing convenience, giving clients the ability to use the appropriate level of security
warranted for the activity involved. Chase has personnel dedicated to the development and oversight
of robust policies and procedures around the safe handling, storage and discarding of sensitive
customer information and requires that employees undergo annual training on the safeguarding of
customer information.
CHASE SELECT PRIVATE STUDENT LOANS
Do you hold or sell private loans after origination?
Chase does not currently sell its Chase Select Private Student Loans.
Do you provide a master promissory note for alternative loans?
No. Students must complete a new promissory note for each loan.
Do you offer a “second look” for private loan borrowers?
Chase does not currently offer “second look” for Chase Select Private Student Loans. Denied
applicants who applied on their own can choose to reapply with a cosigner.
For how long are credit checks for private loans valid?
The credit check for Chase Select Private Student Loans is valid for 90 days. If Chase does not
receive all documents and information required to complete processing within the 90-day period,
students who wish to continue to pursue a Chase Select Private Student Loan will be required to
reapply.
How do you inform private loan borrowers of their option to apply with a
cosigner?
Through our website, printed educational literature and Chase Student Loans customer service
representatives, Chase provides applicants with information about the potential advantages of
applying for the Chase Select Private Student Loan with a cosigner. While a cosigner is not required,
Chase informs applicants that applying with a cosigner could improve their chances for approval and
could lower their interest rate.
CHASE PROPOSAL FOR GRACE COLLEGE & THEOLOGICAL SEMINARY 18 How does a borrower request a cosigner release?
The cosigner release must be requested by the borrower and the borrower must pass applicable
cosigner release underwriting requirements at the time of the request.
When does your company capitalize interest for private loans?
Interest is capitalized at repayment and at the end of any deferment or forbearance period.
Are your borrower benefits guaranteed for the life of the loan?
Yes. Chase Select Private Student Loan borrower benefits are applicable for the life of the loan. The
0.25% benefit for automatic payments will begin when the borrower begins having payments
automatically deducted by Chase and will remain in effect as long as automatic payments continue
without interruption.
Describe the private loan borrower benefit utilization rates.
The Chase Select Private Student Loan program was new for AY 2007-2008 and therefore sufficient
data regarding loans in repayment by which to calculate a statistically meaningful utilization rate for
the 0.25% interest rate reduction for ACH payments is not yet available. While Chase cannot predict
the behavior of borrowers in changing economic conditions, we anticipate an ACH utilization rate of
approximately 15%.
Describe your private loan default aversion initiatives.
Chase’s goal is to keep in close contact with students to prevent default and educate them about their
many repayment options. Chase’s student loan servicing organization:
•
•
•
•
has a separate Collections Team to provide additional focus to delinquent accounts;
educates students on available deferment and forbearance options;
utilizes the most effective tools available to contact borrowers; and
offers a “Promise to Pay” follow-up service.
As part of our ongoing commitment to help borrowers successfully manage repayment, we are
continually developing more robust and comprehensive default aversion programs.
CHASE PROPOSAL FOR GRACE COLLEGE & THEOLOGICAL SEMINARY 19 OTHER CHASE PRIVATE LOANS
Do you offer a private loan for international students?
International students with a valid Social Security number and a U.S. citizen or permanent resident as
cosigner, may apply for the Chase Select Private Student Loan.
Do you offer private loan consolidation?
Yes. Chase offers the Chase Private Consolidation Loan to help borrowers manage their finances
after graduation. This loan allows borrowers to combine all of their eligible private student loans into
a single loan. By consolidating, borrowers may qualify for an overall lower interest rate, may reduce
their monthly payment and may reduce the number of student loan payments they make each month.
Chase informs Private Consolidation Loan applicants that while student loan consolidation may
lower their monthly payments, it could also extend the repayment term, thereby increasing their
overall financial obligation.
More information about the Chase Private Consolidation Loan can be found at
www.chaseprivateconsolidation.com or by calling 866-317-4752.
CUSTOMER SERVICE
Can applicants/borrowers receive information via an automated voice response
system (self-service phone system)?
After loans have been fully disbursed, borrowers can access the Chase VRU, which provides
borrowers with the status of their loan along with various self-service options, including the ability to
obtain general account status, make payments by phone and change payment options. These options
are also available via our servicing website at www.CSLServicing.com.
Can financial aid offices receive information via an automated voice response
system (self-service phone system)?
Currently, loan-level information is not available via the phone. The School Support VRU is used to
ensure that school calls are routed to the appropriate team of School Support representatives.
However, schools can access loan information online through AppWorks Web. Administrators can
view loan record detail, certify Chase Select Private Student Loans and complete a wide range of
actions throughout the originations process.
CHASE PROPOSAL FOR GRACE COLLEGE & THEOLOGICAL SEMINARY 20 Will you construct a custom Web page for a specific school?
Chase will construct a welcome page on our www.ChaseStudentLoans.com site to welcome students
who link from your school’s website to www.ChaseStudentLoans.com. Chase will not host cobranded or custom web pages on behalf of schools.
Your Chase Account Manager will work with you to determine the specific content of the welcome
jump page, including which products will best serve your students and their parents. The page
typically takes approximately two weeks to complete.
FINANCIAL LITERACY AND DEBT MANAGEMENT
What financial education resources do you provide?
Chase has always been a leader in providing financial literacy advice and information to individuals
and families nationwide. Your students and their parents will find a wealth of financial knowledge at
www.chase.com/financial.
At this site, students and parents will have access to a series of financial education workbooks
designed to provide essential facts about banking, budgeting, saving, managing credit, obtaining a
mortgage and investing. Together, these guides provide a foundation for sound financial decisionmaking. Individually, they may be used to review specific financial topics so that students have the
facts at their fingertips at all stages of their financial life: when opening a bank account, developing a
budget and savings plan, establishing credit, buying a home or making an investment.
At www.chase.com/financial, Chase-branded informative materials, including workbooks and
brochures, are available to order online or download in several languages including English, Spanish,
Chinese, Korean and Vietnamese.
Knowledge for College Video Series
In November 2008, we added a “Knowledge for College” video series to our website at
www.ChaseStudentLoans.com. The series provides valuable information on specific college planning
topics, such as:
•
•
•
•
•
•
•
•
•
First Campus Visit (which reminds students to visit the school’s financial aid office)
Loan Repayment Options
Comparing Federal Student Loans and Private Student Loans
Estimating the Family’s Expected Contribution
Benefits of Having a Cosigner
Scholarship and Grant Resources
Admissions Process Tips
Identity Theft Awareness
Loan Application Tips
CHASE PROPOSAL FOR GRACE COLLEGE & THEOLOGICAL SEMINARY 21 In spring 2009, Chase hopes to add other videos on topics such as tips for completing the FAFSA
form, understanding interest rates and APRs, and awareness of federal and private loan consolidation
products.
What educational literature do you provide to students and families?
Chase provides Chase-branded educational materials and loan product literature for schools to use in
helping students and parents navigate the financial aid process. Chase’s Credit Survival Guide is a
comprehensive guide on the responsible use of credit. The guide provides budgeting ideas, financial
definitions and tips on deciphering credit reports. Other available materials include product
brochures, credit management materials and repayment charts with salary and budgeting tips.
These Chase-branded materials are provided at no cost to the school. Chase will not print
customized materials or host co-branded preferred lender lists or websites on behalf of schools.
CHASE PROPOSAL FOR GRACE COLLEGE & THEOLOGICAL SEMINARY 22 CHASE CUSTOMER SUPPORT FOR ACADEMIC YEAR 2009-2010
GENERAL CONTACTS
SUPPORT FOR SCHOOLS
NAME
Michelle Isaac
Kevin McKeown
School Support Team
TITLE
Account Manager
Vice President
School Support Representative
TELEPHONE
317-756-6582
317-756-6254
1-877-968-7331
E-MAIL
Michelle.e.isaac
@jpmchase.com
Kevin.j.mckeown
@chase.com
[email protected]
FAX
317-756-6201
317-756-6201
317-236-5793
APPLICATION SUPPORT FOR CHASE SELECT PRIVATE STUDENT LOAN BORROWERS
TELEPHONE
1-866-306-0868
HOURS
Monday through Friday, 8:00 a.m. to 11:00 p.m., ET
Saturday, 8:00 a.m. to 8:00 p.m., ET
Sunday, 9:00 a.m. to 5:00 p.m., ET
E-MAIL
[email protected]
WEBSITE
chaseselectloans.com
REPAYMENT SUPPORT FOR BORROWERS
TELEPHONE
1-800-489-5005
HOURS
Monday through Friday, 8:00 a.m. to 9:00 p.m., ET
E-MAIL
Through a link provided on cslservicing.com
WEBSITE
cslservicing.com
SERVICE LEVELS
Chase wants to ensure that financial aid offices and borrowers receive high-quality, professional
service whenever they have questions or need assistance. Therefore, we have established the
following service level goals and manage all of our call centers to ensure we are meeting these goals.
CURRENT SERVICE LEVEL STANDARDS FOR CHASE SELECT PRIVATE STUDENT LOANS
AVERAGE SPEED OF ANSWER
80% of calls answered in 20 seconds or less
AVERAGE WAIT TIME
Less than 20 seconds
ABANDONMENT RATE
3% or less for Borrower Call Centers
5% or less for School Support
E-MAIL RESPONSE TIME
Schools:
School Support acknowledges receipt within 4 business hours.
Borrowers:
Borrowers receive a response within 3 business days.
VOICE MAIL RESPONSE TIME
ATTACHMENTS 1 business day
CHASE SELECT PRIVATE STUDENT LOAN PROCESSING REFERENCE
GUIDE FOR ACADEMIC YEAR 2009-2010
LENDER CODE
503000
NCHELP CODES
GUARANTOR
099
UNDERGRADUATE
K70
GRADUATE
K71
GRADUATE HEALTH
PROFESSIONS
K72
LOAN DELIVERY AND FILE MANAGEMENT SYSTEMS
CHASE/APPWORKS WEB
AES ECOURIER
ELMNET REAL TIME PROCESSING
GREAT LAKES SCHOLARNET
NYSHESC ALT LOAN CONNECTION
ADVANTG
OPENNET FMS
OPENNET TRANSACTION MANAGER
LOAN DISBURSMENT OPTIONS
CHASE: EFT
ELM NDN
GREAT LAKES CDS
NYSHESC ESCROW EFT
TG ESCROW
TG NEXT DAY FUNDING
ATTACHMENTS CHASE SELECT PRIVATE STUDENT LOAN PROCESS FLOW CHART
ATTACHMENTS CHASE SELECT PRIVATE STUDENT LOAN
ONLINE APPLICATION PROCESS
Students can complete the Chase Select Private Student Loan application online at
www.ChaseSelectLoans.com.
•
•
•
Student must click “Apply Now” for the appropriate loan program (Undergraduate,
Graduate or Graduate Health Professions)
Student selects whether he or she is applying for a new loan or returning to complete a
saved application.
At this point, the student will need to know if he or she is applying with a cosigner. If a
student applies without a cosigner and is denied, he or she may choose to complete a
new application to apply with a cosigner.
If the student is applying for a new loan, he or she will begin the online application process, which
includes the following sections:
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•
•
•
•
•
•
•
Student Information
Loan Information
Conditional Credit Approval
Account Creation
Employment Information
Reference Information
Identity Verification
Sign Application
If the student is applying with a cosigner, the cosigner needs to be available to complete his or her
information along with signing the online application. We are currently working on an enhancement,
which we hope to have in place prior to the 2009 upcoming peak lending season, by which cosigners
will have the ability to complete and e-sign the application on their own.
If online signatures by both the borrower and cosigner cannot be provided, the student can select to
download and print the loan documents or have the loan documents mailed to his or her permanent
address for signatures.
STUDENT INFORMATION
•
•
Student selects if he or she will be applying with or without a cosigner
Student provides his or her permanent state of residence, U.S. citizenship status, date of
birth, employment status and gross annual income
ATTACHMENTS COSIGNER INFORMATION
•
Student provides cosigner’s U.S. citizenship status, date of birth, employment status and
gross annual income
SCHOOL INFORMATION
•
Student provides the name and location of the school he or she will be attending
BASIC LOAN INFORMATION
•
•
Student selects the academic period, his or her enrollment status, academic program,
field of study, year in school and anticipated graduation date
Student provides the amount he or she would like to borrow as well as a preferred loan
repayment option
DISCLOSURE REVIEW
•
Once the basic information is submitted, the student and cosigner (if applicable) will be
asked to read and accept a disclosure regarding the Federal requirement that all financial
institutions must verify the identity of all customers
STUDENT DEMOGRAPHIC AND CONTACT INFORMATION
•
•
Student must provide his or her Social Security Number and another form of
identification, permanent address, contact information (e-mail and phone number) and
preferred method of contact
Student must complete all portions of this section
COSIGNER DEMOGRAPHIC AND CONTACT INFORMATION
•
•
•
If the student indicated that he or she is applying with a cosigner, then this section must
be completed by the cosigner
Cosigner must provide his or her Social Security Number and another form of
identification, permanent address, contact information (e-mail and phone number) and
preferred method of contact
Cosigner must complete all portions of this section
CREDIT APPROVAL
•
•
•
The borrower and cosigner (if applicable) must read and complete the Chase Credit
Authorization Disclosure, which authorizes Chase to access his or her credit report in
order to determine eligibility for the Chase Select Private Student Loan
Conditionally approved applicants will receive a conditional approval message and a
checklist of information and documents that must be provided to complete processing
Applicants who are not approved will be informed of the option to reapply with a
creditworthy cosigner
ATTACHMENTS STUDENT EMPLOYMENT INFORMATION
•
•
The student must provide information about his or her current employer, if any,
including name, occupation, address, phone number and annual income
Information about the student’s previous employer (if any) is required if the student has
been employed with his or her current employer for less than two years
STUDENT PERSONAL REFERENCE INFORMATION
•
•
The student must provide the reference’s name, address, phone number and relationship
to the student
The reference cannot be the cosigner or the same as the cosigner’s reference
COSIGNER EMPLOYMENT INFORMATION
•
The cosigner must provide information about his or her current employer (if any),
including name, occupation, address, phone number and annual income.
APPLICATION REVIEW
•
The student and cosigner (if applicable) will be given the opportunity to review their
application and make any changes if necessary
SIGN APPLICATION
•
•
•
•
Eligible students and cosigners can choose to sign the application electronically
The student and cosigner (if applicable) will be presented with the hardware/software
requirements to ensure he or she will be able to sign electronically
The student and cosigner will be presented with the Electronic Signature disclosure and
must consent to both the hardware/software requirements and signing electronically
Upon successful completion of the electronic signature process, the student and
cosigner will be given the opportunity to download or print the completed application
VIEW AND PRINT OR CHASE PRINT AND MAIL
•
Students and cosigners (if applicable) who are not eligible to e-sign or do not want to
sign electronically have the option to “wet” sign an MPN
THANK YOU PAGE
•
The application is now complete! The student is asked to create a User ID and a Security
Code, which allows the student to return to the website to check the status of his or her
application as well as to apply for additional loans.
ATTACHMENTS HELPFUL FEATURES
•
A status bar at the top of each page shows the student where he or she is in the process
•
Required fields are marked with an *
•
Help is available for certain fields
•
Each screen gives the student an opportunity to go Back, Continue, or Cancel the
application
•
Students can Save & Exit from the screens following Account Creation
ATTACHMENTS FEDERAL STAFFORD, PLUS
AND GRAD PLUS LOANS
For Academic Year 2009-2010
Chase is a national leader in the Federal Family Education
Loan Program (FFELP) and has provided billions of dollars
of federal loans to students and their parents.
For the 2009-2010 academic year, Chase will originate new and serial Stafford, Parent PLUS and
Grad PLUS Loans for attendance at your school.
Chase intends to participate in the Department’s Loan Purchase Program under the Ensuring
Continued Access to Student Loans Act, which allows lenders to sell 2009-2010 FFELP loans to the
Department. As a result, eligible 2009-2010 academic year FFELP loans made by Chase will be sold
to the Department after full disbursement. In order to accommodate Chase’s ability to participate in
the Department’s 2009-2010 purchase program, all Chase AY 2009-2010 FFELP loans must:
•
•
•
have a first disbursement date on or after May 1, 2009
be for a loan period that includes or begins after July 1, 2009
be fully disbursed by June 30, 2010
Since the Department will determine the loan servicer for the loans it purchases, this proposal
includes information about Chase’s originations process only and does not discuss Chase’s FFELP
loan servicing.
Chase FFELP Loan Processing Options
Chase offers a top-tier origination platform that allows you and your students to benefit from
streamlined loan processing, including integration with several loan delivery systems and disbursing
agents. Chase can support school-initiated, borrower-initiated, lender flow and some guarantor flows.
ONLINE MPN AND E-SIGNATURE
LOAN DELIVERY SYSTEMS
DISBURSEMENT OPTIONS
Chase Campus Online
ASA Direct
HESC Web
Chase AppWorks Web
ASA Direct
ELMNet
Great Lakes ScholarNet
OpenNet
TG AdvanTG
Chase EFT
ASA Direct
ELM NDN
Great Lakes CDS
HESC Escrow & Express EFT
TG Escrow & Next Day Funds
CHASE PROPOSAL FOR GRACE COLLEGE & THEOLOGICAL SEMINARY
1 PLUS and Grad PLUS Pre-Approval
The PLUS and Grad PLUS credit approval process is fast and simple, with a credit decision usually
within seconds. Once approved, applicants can complete the application and e-sign an MPN online.
If they prefer to sign a paper MPN, they can download and print the MPN or request that one be
mailed to them.
PLUS credit decisions are valid for 180 days from the date the credit report is pulled and are
communicated to schools based on the preferred method indicated in the profile. Options include
reports, data files, an approval/denial file through AppWorks Web or an approval/denial file
through a file management system such as ELM.
Current FFELP Loan Borrower Benefit
Chase Stafford, Parent PLUS and Grad PLUS loan borrowers, will receive a 0.25% interest rate
reduction when they have their monthly payments automatically deducted from a bank account
(ACH). Please note that while Chase intends to sell its 2009-2010 FFELP loans to the Department,
the Department has indicated that it will continue to honor this interest rate reduction benefit.
In addition, if the selected guarantor subsidizes all or part of the federal default fee, your students will
receive that benefit as well. Chase works with most guarantors and will work with your financial aid
office to implement the guarantor of choice.
The following chart outlines the savings that may be realized by Chase FFELP borrowers as a result
of the 0.25% interest rate reduction for ACH payments, beginning with loans first disbursed on or
after May 1, 2009.
AMOUNT BORROWED
STAFFORD LOAN
SAVINGS
PLUS LOAN SAVINGS
GRAD PLUS LOAN
SAVINGS
$10,000
$
252.42
$
237.73
$
284.00
$15,000
$
378.64
$
356.59
$
426.00
$20,000
$
504.85
$
475.46
$
568.01
$40,000
$
1,009.69
$
950.91
$
1,136.01
$60,000
$
1,514.54
$
1,426.37
$
1,704.02
STAFFORD LOAN ASSUMPTIONS: Savings above assume a 100% unsubsidized Stafford Loan with a 6.80% in-school
interest rate, a 6.55% interest rate in repayment and a 51-month deferment period. Interest is capitalized at repayment.
Borrower received a 0.25% interest rate reduction at repayment and a standard repayment account. Loan amount was
spread equally over 4 years with 2 equal disbursements per year.
PLUS LOAN ASSUMPTIONS: Savings above assume a PLUS Loan with an 8.50% in-school interest rate, an 8.25%
interest rate in repayment and 2 months of deferment. Borrower received a 0.25% interest rate reduction at repayment
and a standard repayment account. Single disbursement of the entire loan amount.
GRAD PLUS LOAN ASSUMPTIONS: Savings above assume a Grad PLUS Loan with an 8.50% in-school interest rate,
an 8.25% interest rate in repayment and a 30-month deferment period. Borrower received a 0.25% interest rate reduction
at repayment and a standard repayment account. Loan amount was spread equally over 2 years with 2 equal
disbursements per year.
CHASE PROPOSAL FOR GRACE COLLEGE & THEOLOGICAL SEMINARY
2 CHASE CONTACT
INFORMATION
Federal Stafford, PLUS and Grad PLUS Loans
For Academic Year 2009-2010
Chase Student Loans employs hundreds of customer
service professionals whose primary goal is to continually
provide you and your students with prompt, courteous
service and accurate, up-to-date information.
Support for Your Financial Aid Office
The following team is committed to supporting Grace College & Theological Seminary’s financial aid
office by providing prompt responses to inquiries and dedicated assistance with issue resolution:
•
Michelle Isaac is your dedicated Account Manager. Michelle
is supported by Kevin McKeown, who has over 13 years of education finance−related
experience. Kevin is the Chase Student Loan division’s Vice President supporting your
school and is Grace College & Theological Seminary’s dedicated management contact.
ACCOUNT MANAGEMENT:
o
o
•
317-756-6582
[email protected]
SCHOOL SUPPORT REPRESENTATIVES: These
representatives are available to assist
financial aid office personnel with questions and problem resolution, Monday through
Friday from 8:00 a.m. – 9:00 p.m. ET.
o
o
•
Phone Number
E-mail Address
Phone Number
E-mail Address
1-877-968-7331
[email protected]
TECHNICAL SUPPORT: Our
Technical Support Specialists can assist you with
implementation support regarding the Chase originations platform. In addition, these
specialists can help you identify the processing scenario that best meets the needs of
your office and the students you serve, and help you improve your current processing
method.
JENNY THOMSON
o
o
Phone Number
E-mail Address
623-334-4022
[email protected]
CHASE PROPOSAL FOR GRACE COLLEGE & THEOLOGICAL SEMINARY
3 RANDY CRAIG
o
o
Phone Number
E-mail Address
804-320-1665
[email protected]
Support for Your Students
Chase customer service representatives are available to assist with inquiries regarding student loans,
take applications for loans, provide loan status updates, update borrower account information and
research missing information necessary to process a loan application. Regular customer service hours
are Monday through Friday from 8:00 a.m. – 9:00 p.m. ET.
•
•
•
Phone Number
E-mail Address
Web Site
1-800-487-4404
[email protected]
www.ChaseStudentLoans.com
CHASE PROPOSAL FOR GRACE COLLEGE & THEOLOGICAL SEMINARY
4 CHASE ANSWERS TO
FREQUENTLY
ASKED QUESTIONS
Federal Stafford, PLUS and Grad PLUS Loans
For Academic Year 2009-2010
Please Note: The responses to these frequently asked questions are accurate as of the date of this
proposal response only and are subject to change.
1.
What is Chase's position on selling loans to the Department of Education for
2008-2009 and 2009-2010 academic years?
Under the Ensuring Continued Access to Student Loans Act, the U.S. Department of Education (the
Department) has announced a purchase program that allows lenders to sell eligible 2008-2009 and
2009-2010 academic year FFELP loans to the Department. Chase intends to sell its eligible 20082009 and 2009-2010 academic year Stafford, PLUS and Grad PLUS loans to the Department. In
order to accommodate Chase’s participation in the Department’s purchase program, all 2009-2010
FFELP loans must be first disbursed on or after May 1, 2009 (for a loan period that includes or
begins after July 1, 2009) and must be fully disbursed by June 30, 2010.
2.
Will Chase provide life-of-loan servicing for loans sold to the Department?
As noted above, Chase intends to sell its eligible AY 2009-2010 FFELP loans to the Department
under its loan purchase program. The Department may choose to change the loan servicer for any
loans purchased. Chase will, however, provide interim servicing of the loans until they are fully
disbursed and sold to the Department. The borrower will be notified once their loan is sold and
converted to the Department’s designated servicer.
3.
Will borrowers have split servicing?
As noted above, the Department may choose to change the loan servicer for any loans it purchases,
which may result in split servicing for the borrower. Loans made for prior loan periods and not
eligible for sale to the Department will be serviced by Chase.
CHASE PROPOSAL FOR GRACE COLLEGE & THEOLOGICAL SEMINARY
5 4.
What lender code should I use to process Chase FFELP loans?
Beginning with loans guaranteed on or after May 1, 2009, the lender code for all Federal Stafford,
Parent PLUS and Grad PLUS loans originated directly by Chase is 803000.
5.
What if I use a code other than the one listed above?
Beginning with loans guaranteed on or after May 1, 2009, loans certified for origination directly
through Chase (or through supported third-party originations processes) must be certified under
lender code 803000. Loans that are certified under any other code will be rejected and a new
certification record will need to be sent.
In preparation for the 2009-2010 processing season, we suggest that, if necessary, you update the
following with the correct Chase lender code of 803000:
•
•
•
Printed and online lender lists
FAMS default lender code settings
Settings for loan delivery systems such as ELM or guarantor-based flows
6.
Will serial borrowers have to sign a new MPN?
If the borrower’s prior loans were originated under the 803000 LID, and the borrower applies
through one of our currently supported originations processes, the borrower should not need to sign
a new MPN.
Beginning with loans guaranteed on or after May 1, 2009, if prior loans were originated under a
Chase lender code other than 803000, serial borrowers will be required to sign a new MPN.
Chase makes the process of signing a new MPN easy by allowing borrowers to complete their loan
application and promissory note online, in a single session, if they so choose.
7.
Will you pay the origination fee on behalf of the borrower?
No. The federally mandated origination fee will be assessed to Chase FFELP loan borrowers.
8.
Do you offer Federal Consolidation Loans?
No. Chase does not currently offer Federal Consolidation Loans.
9.
Do you work with ELM for loan certification, disbursements and changes?
Yes. Chase is a full ELM lender member and supports certification, changes and disbursements via
ELM for loans originated directly by Chase under lender code 803000.
CHASE PROPOSAL FOR GRACE COLLEGE & THEOLOGICAL SEMINARY
6 10. What student information systems can you work with?
Chase has experience working with a vast number of schools throughout the country. The schools
we currently work with utilize nearly every campus-based information system including, but not
limited to, Datatel Colleague, PeopleSoft, PowerFAIDS and Banner.
11.
Can financial aid offices access their students’ loan information and make
changes to loan information online?
When you process Chase Stafford, PLUS and Grad PLUS loans via AppWorks Web, your office can
access loan information online through AppWorks Web at https://Chase.v-tek.com/AppWorks.
Administrators can view loan record detail, including:
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Requested loan amount
Application status (e.g., awaiting certification, awaiting disbursement, awaiting
borrower information or loan canceled)
Account history
AppWorks Web allows schools to perform a full range of transactions, including:
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Online certification
Application retrieval, with the ability to view and print the application
Loan data updates
Loan transactions, such as cancellations, reinstatements, loan amount increases, loan
terminations and reversals of loan terminations
Disbursement transactions, such as disbursement date changes and hold/release
processing
12. What online resources are available to students?
Through our Web site at www.ChaseStudentLoans.com, families can get the information they need
before applying for a loan. Through our answers to Frequently Asked Questions and our Help
sections, families can:
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Learn about the various financing options that exist, including information on how
to search for scholarships and grants
Better understand their loan options, including potential tax benefits
Link to resources such as the FAFSA online, NSLDS and the Department of
Education
Use calculators to estimate college costs, budgets and loan costs, such as monthly
payments and the interest-related cost of deferment or forbearance
CHASE PROPOSAL FOR GRACE COLLEGE & THEOLOGICAL SEMINARY
7 Students who choose to apply for a Chase student loan can easily manage the loan application
process by taking advantage of:
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Online application and e-signature
Online pre-approval for PLUS and Grad PLUS applicants
Online access to information about their application status and progress
Online ability to maintain and update personal information
13. Do you provide any information to help students plan for college?
In November 2008, we added a “Knowledge for College” video series to our website at
www.ChaseStudentLoans.com. The series provides valuable information on specific college planning
topics, such as:
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First Campus Visit (which reminds students to visit the school’s financial aid office)
Loan Repayment Options
Comparing Federal Student Loans and Private Student Loans
Estimating the Family’s Expected Contribution
Benefits of Having a Cosigner
Scholarship and Grant Resources
Admissions Process Tips
Identity Theft Awareness
Loan Application Tips
In spring 2009, Chase hopes to add other videos on topics such as tips for completing the FAFSA
form, understanding interest rates and APRs, and awareness of federal and private loan consolidation
products.
CHASE PROPOSAL FOR GRACE COLLEGE & THEOLOGICAL SEMINARY
8 Important Information: Loans are subject to submission of a completed application, credit
approval and other required documentation and verification, as applicable. The borrower benefits
reflected in this proposal response are offered to Chase student loan borrowers attending Grace
College & Theological Seminary for the stated Academic Year and are not contingent upon Chase
being selected for placement on Grace College & Theological Seminary’s preferred lender list.
Nothing herein shall be construed as an agreement on the part of Chase to make loans available to or
on behalf of Grace College & Theological Seminary students and Chase retains complete authority
and discretion with regard to whether to provide such loans. Offered borrower benefits are subject
to change at Chase’s discretion.
Note Regarding Public Disclosure: Chase requests that Grace College & Theological Seminary
consult with Chase and obtain Chase’s consent before issuing any press release or other public
announcement with respect to Chase’s submission of a response to this Request for Information or
Chase’s selection as a “preferred” or “recommended” lender by Grace College & Theological
Seminary, and that Chase be afforded the opportunity to review and comment upon any such public
announcement prior to its release.
© 2009 JPMorgan Chase & Co. All rights reserved.
CHASE PROPOSAL FOR GRACE COLLEGE & THEOLOGICAL SEMINARY
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