In a long anticipated move, Congress has voted to abolish the Federal Student Loan Consolidation Single Lender Rule. Prior to this week, borrowers that had all their student loans with one lender were forced, by law, to consolidate with that lender - or with no one at all. This anti-competitive environment has cost student loan borrowers millions of dollars in interest payments, and the repeal of the Single Lender Rule is seen as a very positive move by consumer rights groups across the country.

“Large student loan lenders have basically been holding borrowers hostage for years, keeping the borrowers in the dark regarding their Federal consolidation rights,” said Michael A. Babb, Founder and President of Academic Financial Solutions. “It has taken very aggressive marketing and lobbying efforts by consumer advocacy groups to allow the millions of borrowers that currently have all their loans with a single lender the opportunity to shop around and find the best deal for their particular situation.”

Donald Young, student loan borrower, tells a story that rings true with many people who are repaying their loans. “All my student loans are with a very large Student Loan Lender. I’ve been paying my student loans off for 8-years, and never once did the Lender contact me about consolidating my loans. By the time I learned about the benefits of student loan consolidation, I was told by another student loan consolidation company that I needed to call the Lender that all my loans were with. I called the Lender and they said they could not help me because my balance, after paying for 8-years, was too low to qualify for the federal consolidation program.” Added Young, “Having my Lender keep me in the dark cost me thousands of dollars in interest over the life of my loans. I’m glad the single lender rule is being abolished by Congress - at least that way other borrowers won’t end up in my position, because the increased competition will give everyone a chance to consolidate with whomever they choose.”

“One way to shave valuable time off the consolidation process is to use a safe, secure e-Signature application,” added Babb. “Our proprietary e-Signature process takes about five minutes to complete, and it really speeds up the time it takes to consolidate your loans. Borrowers that take advantage of our industry leading e-signature application before midnight, June 30th will be guaranteed that they will lock in the current interest rates and avoid the pending July 1st automatic rate increase.”

Based in Tampa, Florida, Academic Financial Solutions has saved Federal Student Loan holders millions of dollars by reducing their payments through consolidation. For more information on how to consolidate Student Loan debt, call Toll Free 1-866-416-6333 or visit their Website at http://www.AcademicFinancial.com.

Contact:

Academic Financial Solutions, Tampa
Rich Distler, 813-830-7906 x225

Source: Academic Financial Solutions

This entry was posted by Taman Siswa on Wednesday, June 21, 2006 at 12:40 am and is filed under Student Loan. Tags: Loans, Student, Student Loan, . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.