You should get in contact with Paula Craw, the Director of Student Financial Services at the Association Of American Medical Colleges (AAMC).

You can reach her directly at (202) 828-0511 or by email to pcraw@aamc.org. She is an expert on loan consolidation and should be able to answer any questions that you might have.

Additionally, you can visit the AAMC website at www.aamc.org. They have a great guide called the "Layman's Guide to Educational Debt Management" as well as MONEYMATTERS (a free debt management listserv that you should sign up for and is available to residents and fellows). Hope this helps.

Larry

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Replying to:

My Stafford loans were originally from different lenders and then all bought by Wells Fargo. Now that I want to consolidate to the low interest rates, Wells Fargo is refusing to release them to lenders that have better incentives, such as a 1/4% reduction for automatic repayment and 1% reduction after 36 ontime payments. Those incentives would save me thousands over the long haul. I've tried to find the law, but have been unsuccessful. Any suggestions? Should I just give up and consolidate with Wells Fargo?
Thanks.

Zip Code: lkeller@physicianfinancialservices.com

This is consistent with the rules that govern the federal student loan programs and is referred to as the "Single Holder Rule" which states that if all of your loans are with one lender (holder) you will need to contact that lender to consolidate. You may go to a different lender only if your lender doesn't offer consolidation or doesn't offer consolidation with Income Sensitive Repayment terms. Please find this and other information about loan consolidation in the "Primer on Loan Consolidation" at the following:
http://www.aamc.org/students/medloans/loanconsolidation/specific.htm#13

The good news is that regardless of the repayment incentives being offered by the other lenders that you describe, by consolidating, you're able to lock in a fixed rate on your previously variable rate Stafford Loans that will not change for the life of the loan. Not to mention that it is far better to consolidate with an organization such as Wells Fargo that has a solid reputation and track record for loan servicing than to consolidate with an outfit that has popped up in the recent "frenzy" of loan consolidation activity with no track record for service or sustainability.

--- --- --- --- --- --- --- --- ---

Replying to:

My Stafford loans were originally from different lenders and then all bought by Wells Fargo. Now that I want to consolidate to the low interest rates, Wells Fargo is refusing to release them to lenders that have better incentives, such as a 1/4% reduction for automatic repayment and 1% reduction after 36 ontime payments. Those incentives would save me thousands over the long haul. I've tried to find the law, but have been unsuccessful. Any suggestions? Should I just give up and consolidate with Wells Fargo?
Thanks.

Zip Code: pcraw@aamc.org