Is it possible to change lenders?

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Is it possible to change lenders?

Postby andersor » Thu Apr 11, 2013 11:18 am

I have been very unhappy with my lender for the last couple of years. Is it possible for me to change? My loans were consolidated in 2006; would my interest rate go up drastically?
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Re: Is it possible to change lenders?

Postby Aid Whiz » Tue Apr 16, 2013 1:48 pm

For federal loans, the only way to change lenders is by consolidating again, and you can only do this under 3 conditions:

*Borrowers can consolidate existing consolidation loans into a new Direct Consolidation Loan if they include at least one other FFEL or Direct Loan into the new consolidation loan.

*Borrowers can consolidate a single Federal Consolidation Loan if the loan is in default status or has been submitted to a guaranty agency for default aversion by the loan holder.

*Borrowers can consolidate a single Federal Consolidation Loan if they intend to apply for loan forgiveness under the Public Service Loan Forgiveness Program.


Source: http://www.loanconsolidation.ed.gov/
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