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President George W. Bush recently signed into law H.R. 4939, the “Emergency Supplemental Appropriations Act for Defense, the Global War on Terror, and Hurricane Recovery, 2006.” This legislation also included the repeal of the Single Holder Rule, enabling borrowers to choose any lender when consolidating student loans.
What is the single holder rule?
The Single Holder Rule prohibited students who have all of their loans with a single lender from consolidating with another company.
When is the repeal effective?
The repeal is effective for all consolidation loan applications received by a lender on or after June 15, 2006.
How will this affect the student?
Students now have an unfettered choice of lenders and can shop around for the benefits that work best for them. Nothing will change as to how students will complete the application for consolidation. Borrowers need to make an educated decision while choosing a lender. The process will remain the same thereafter.
Who can students call for more information?
The Nelnet School e-newsletter is created quarterly by Nelnet and designed to serve as a valuable information resource and communication tool for the post secondary campus. Highlighting industry and regional news from the Department of Education, financial aid facts and figures, and specific regional events, the Nelnet eUpdate offers a wide range of pertinent educational services information at your fingertips.
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