Before the Senate votes on H.R. 609, the College Access and Opportunity Act, students all over the country are asked to contact their senators and ask them to get rid of the single-holder rule. The Senate is on break right now and won't be back until April 24. After that date, a vote could happen at any time.
The single lender rule hurts student borrowers because it doesn't let them consolidate their loans with other lenders who may have better terms. http://www.nextstudent.com/consolidation loans/consolidation loans.asp student loan consolidation advantages.
On March 30, the House voted to get rid of the rule that only one person can have a student loan. As of right now, the rule is in place for the next three months and only applies to student loans accepted on or after July 1.
Ask Senators to get rid of the Single Lender rule.
Students can make their voices heard and ask their senators to do the right thing and get rid of the single lender rule. The vote is now in the hands of the Senate and could happen at any time. This is why:
With the bill as it is now, students don't have that many options. Student loans must go through the Department of Education first. Students can't use other lenders to consolidate their student loans, so they may be stuck with one lender for years who doesn't offer any good benefits. With the single lender rule in place, students also can't consolidate their student loans or use the benefits that come with it.
If the Senate does vote for the bill, the single lender rule won't be gone until July 1. The reauthorization bill can now be changed by the Senate. If any changes are made, the bill goes back to the House for approval.
Students Deserve More Options
If the single lender rule didn't exist, borrowers could breathe a lot easier. They would have a lot more choices, including the option to find better rates and perks. Student loan borrowers already have a lot to worry about without having to worry about how they will pay off their huge bills.
There's no doubt that students should have the freedom to choose their own lenders. Student loan borrowers and other people who don't like the single lender rule can easily write or call their senators to ask them to get rid of it. Students can get in touch with senators through http://www.senate.gov/general/contact information/senators cfm. cfm?OrderBy=last name&Sort=ASC. Or, they can call (202) 224-3121 to talk to their senators.
Students have been taking a lot of hits lately. When President Bush signed the Deficit Reduction Act in February, $12.7 billion was cut from the student loan program. Students and others who care should call their senators and tell them that student loan borrowers need to be able to consolidate with the lender of their choice right away.
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