Re consolidating already consolidated student loan
• Maintain copies of cancelled checks, print out copies of screen shots from the [loan servicer] website that show payments that you have made, and copy bank statements that show direct payments.
It's possible to consolidate some student loans.Ford Federal Direct Student Loan program and the Federal Family Education Loan program to be transferred to alternative loan servicers. This law is part of a reform that is attempting to keep private business out of student loans, and thereby reduce costs, errors, and instances of fraud.Prior to this change, only six loan servicers would have handled the administration of your loan: Department of Education Student Loan Servicing Center (ACS), Direct Loan Servicing Center (ACS), Fed Loan Servicing (PHEAA), Great Lakes Educational Loan Services, Inc., Nelnet, and Sallie Mae.However, no major transfer of the amount of information represented by this many loans will be completely seamless.Borrowers will need to stay on top of their own loan information to insure that their loan agreements are honored.The potential for consolidation is limited only by the existing interest rate on the applicable loan.
A consolidation plan for a loan that carries an interest rate of 7 percent may reduce the loan's original rate by 50 percent or more.
This makes it very difficult to discharge any student loan in bankruptcy.
Student loans backed by state and federal authorities, including Stafford loans and PLUS loans, are especially difficult to wipe away during the bankruptcy process.
This company may work out an arrangement with your original lender that involves paying off the existing debt and issuing an entirely new loan at a lower rate.
Be sure to keep your lender informed during this process.
Some banks maintain a strict policy against consolidating already-issued loans.