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KANSAS CITY, MO – March 14, 2006 – College students who finance their education using federal student loans from Commerce Bank will now pocket a little more cash – at the bank’s expense.
For the 2006-2007 school year, Commerce will pick up the tab on the mandatory two percent origination fee* charged by the government on all federal student loans in all 50 states.
"Commerce understands that families and students are always looking for ways to save," stated Ginny D’Angelo, vice president and manager of student loans for Commerce Bank. "It is our commitment to provide the best possible pricing to borrowers, and help families save anywhere they can."
Traditionally, students who took out a loan would have to pay two percent of that amount right off the top to the government. So, on a $5,000 loan, the student received only $4,900, but had to pay back the full $5,000. With this new program, all $5,000 goes to the student. Commerce will fund the origination fee.
The “no origination fee” program at Commerce is available to undergraduate and graduate students financing their post-secondary education through Federal Stafford Loans."
Commerce eliminates fee on federal student loans Says D’Angelo, who has worked in Commerce Bank’s student loan department for more than 20 years, “Paying for a college education is challenging enough. This program frees up all of the borrowed funds to pay education costs, rather than government fees.”
Commerce Bank has been in the student loan business for more than 40 years. It is the 26 th largest originator of student loans in the United States, according to Greentree Gazette, a business magazine for higher education.
* Origination fee of 2% effective 7/1/06. A 1% guarantee fee may or may not be charged by a guarantee agency and would be payable by the borrower, if charged. The Commerce Bank zero fee program can be changed or discontinued without notice. Any termination or modification of the program will not affect the terms of loans previously made.
About Commerce Bank
Commerce Bank is the principal subsidiary of Commerce Bancshares, Inc. (NASDAQ: CBSH), a $13.9 billion regional bank holding company. For more than 140 years, Commerce has been meeting the financial services needs of individuals and businesses. Commerce provides a diversified line of financial services, including business and personal banking, wealth management and estate planning and investments through its affiliated companies. Commerce currently operates in approximately 340 locations in Missouri, Illinois and Kansas. Commerce also has operating subsidiaries involved in mortgage banking, credit related insurance, venture capital and real estate activities.
For more information on other ways to pay for college, visit commercebank.com/learn, a step-by-step guide about choosing a college, determining costs, qualifying for financial aid, and making sound financial decisions about higher education.
For more information contact:
Lisa Siebert, (816) 234-1930
lisa.siebert@commercebank.com, OR
Jeanne Howard, (314) 746-3672
jeanne.howard@commercebank.com
Website: www.commercebank.com
e-mail: mymoney@commercebank.com
SYMBOL: CBSH
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