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Students Should Ask Senators to Eliminate Single Lender Rule |
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Submitted by Martin Martinez
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Students throughout the country are urged to contact their senators to ask them to eliminate the single holder rule before the Senate votes on the College Access and Opportunity Act, or H.R. 609. The Senate now is in recess and will be back in session April 24, so a vote can occur any time after that date.
Student borrowers are feeling the negative impact of the single lender rule, as it does not allow students to consolidate using other lenders that may offer better http://www.nextstudent.com/consolidation_loans/consolidation_loans.asp student loan consolidation advantages.
On March 30 the house voted to eliminate the single holder rule on http://www.nextstudent.com/ student loans. As it now stands, the rule is in place for the next three months and only affects those student loans accepted on or after July 1.
Ask Senators to Eliminate Single Lender Rule
With the vote now in the hands of the Senate and expected any time, students can make their voices heard and ask their senators to do the right thing and repeal the single lender rule. Here’s why:
Currently, the way the bill stands, students do not have that many choices. Firstly, student loans have to go through the Department of Education. Because students are prohibited from using other lenders for student loan consolidation, for years they can be stuck with one lender that does not offer advantageous benefits. With the single lender rule in place, student loan reconsolidation also is unavailable to students along with the benefits of that program.
If the Senate does approve the bill, elimination of the single lender rule would not take place until July 1. The Senate now can make changes to the reauthorization bill; if any changes are made the bill is sent back to the House for approval.
Students Deserve More Options
Borrowers could breathe much easier if the single lender rule was out of the way. They would have many more options, including the choice to find more advantageous rates and incentives. Student borrowers have enough to worry about without having to wonder how they will pay off their huge student loan bills.
There is no question that students deserve the right to be able to choose their own lender. Student loan borrowers and other concerned citizens easily can write or call their senators to ask them to eliminate the single lender rule. Students can contact senators through http://www.senate.gov/general/contact_information/senators_cfm.cfm?OrderBy=last_name&Sort=ASC. Or students can contact their senators by phone at (202) 224-3121.
Students lately have been taking many hits, starting with the $12.7 billion in cuts to the student loan program when President Bush signed the Deficit Reduction Act in February. It is important for students and others concerned to make phone calls to persuade their senators that student loan borrowers desperately need the option to consolidate with the lender of their choice.
NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding as easy as possible. Learn more about http://www.nextstudent.com/ Student Loans at http://www.nextstudent.com/.
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