Student Borrowers Now Have More Choices; Elimination of Single Holder Rule lets borrowers shop for best service, plan when consolidating student loans.

FREDERICKSBURG, Va. -- Students who took out loans to pay for college now have more choices when they consolidate them, as a result of the Emergency Supplemental Appropriations Act of 2006 (H.R. 4939), which was signed into law on June 15. As part of the Act, Congress eliminated the "single holder rule," which prohibited borrowers from receiving a consolidation loan with any lender of their choice if all of their underlying loans were held by a single lender--even if the other lender offered better terms and conditions.

Now, students can get the consolidation loan that works best for them, taking advantage, for example, of borrower benefits for setting up automatic debit for payments and for consistent, on-time payments.

"Consumers like choice. They like the freedom to find financial solutions that work best for them," 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."

With federal student loan interest rates increasing substantially July 1, college students and graduates are seeking to consolidate their student loans now, locking in today's low interest rates and potentially saving thousands of dollars in interest over the life of their loans. Beginning July 1, the interest rate for existing Stafford student loans jumps from 4.7 percent to 6.54 percent during in-school, grace and deferment periods and will rise to 7.14 percent from 5.3 percent during repayment and forbearance periods.

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

Even current students may be able to consolidate their loans and lock-in today's low rates by immediately entering a repayment plan and forgoing 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 law.

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 is the U.S. consumer and commercial banking brand of JPMorgan Chase & Co. (NYSE:JPM). Chase has 112 million credit cards issued and serves consumers and small businesses through more than 2,600 bank branches, 7,400 ATMs and 280 mortgage offices as well as through relationships with 15,600 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 at www.chase.com.