student loan consolidation loan center
Friday, February 5th, 2010
Student loans – what happens when they are sold to another company?
I am looking for a consolidation loan. There are so many companies out there. I heard that some companies with Great discount promotional interest rate (eg time payment, your debit entry automotive, etc.), turn around and sell your loan to another company. When this happens, do the terms must remain the same as the original consolidated loan (ie interest rates, payment schedule etc.)? I hear things this issue varies. I contacted the Federal Student loan information center and was told conflicting things as well.
The "incentives" that lenders offer to allow you to consolidate are always subject to change, although most lenders will not do it because they want to keep your business. Typically if a loan is sold all conditions remain the same (the interest rate with no incentive must remain the same). It is possible they may change, but very unlikely. Over the past 2 years where I worked for a repair student loan and seen sales of many lenders I've never seen anyone lose an incentive only because of that. If she passed lenders and they ignored the correspondence of the new company and made their payments late … well thats another story!