Time is Short to Lock in Lower Rates Before Interest Rates Rise July 1st; Loan Consolidation Offers Students and Graduates Opportunity to Save Thousands on College Loans

Business Wire, May 1, 2006

FREDERICKSBURG, Va. -- With federal student loan interest rates expected to rise on July 1, college students and graduates can lock in today's low interest rates and potentially save thousands of dollars in interest over the life of their loan by consolidating their student loans now.

To help ensure that applicants receive the lowest possible rate, Chase Education Finance will honor the lower interest rates on all eligible complete consolidation applications received by June 30.

"Loan consolidation can significantly help students and graduates manage their debt repayments and lessen their financial burden," said Barry Morrow, president of Chase Education Finance. "Chase can provide every type of student loan to help students, graduates and their parents achieve their educational goals."

Beginning July 1, interest rates are expected to rise substantially for students with federal loans, but students who consolidate before July 1 can lock in at today's low rates, lowering their monthly payments by up to 51 percent. For loans disbursed prior to July 1, 2006, the interest rate is determined based on the bond equivalent rate of the 91-day Treasury bill auctioned at the final auction held before June 1st. As of April 27, the rate on the 91-Day T-bill was 1.63% higher than the T-bill rate used to set student loan interest rates in 2005.

Current students may be able to consolidate their loans and lock-in today's low rates by immediately entering a repayment plan and foregoing their grace period. Once their loans consolidate, they can apply for deferment of future payments until graduation. After July 1, students cannot consolidate their loans while in school, according to federal guidelines.

In March, Chase completed its acquisition of Collegiate Funding Services Inc., creating a leading education finance company dedicated to providing students and their families with the practical advice and loan solutions they need to pay for the cost of higher education. For additional information about loan consolidation, visit www.cfsstudentloans.com or call toll-free 1-877-523-7562.

About Chase

Chase, the U.S. consumer and commercial banking brand of JPMorgan Chase & Co., has more than 110 million credit cards issued and serves consumers and small businesses through more than 2,600 bank branches, 7,300 ATMs and 280 mortgage offices as well as through relationships with over 15,000 auto dealerships, and 2,500 schools and universities. It also serves more than 25,000 commercial banking clients, including corporations, municipalities, financial institutions and not-for-profit entities with annual revenues generally ranging from $10 million to $2 billion. More information about Chase is available through www.chase.com.