Direct loan consolidation simplifies student loan name changes [2007]

I had a few student loans, under 3 different lenders, and one lender would not change my name with a court order—I’d send them a copy of the order, they’d say they didn’t get it, I’d send a new one, wash rinse repeat.  This summer what I did was do a direct loan consolidation (which is through the US government) and they combined all the loans into one under my new name (even though one was under my old name the social security numbers matched).  It also had the added benefit of eradicating my defaulted loans, which upped my credit score and made me eligible for student financial aid again.  It also resets the grace period and under income contingent repayment, the payments will fluctuate depending on your income.  Definitely a perk!

A reader notes:

I had a few student loans, under 3 different lenders, and one lender would not change my name with a court order—I’d send them a copy of the order, they’d say they didn’t get it, I’d send a new one, wash rinse repeat.  This summer what I did was do a direct loan consolidation (which is through the US government) and they combined all the loans into one under my new name (even though one was under my old name the social security numbers matched).  It also had the added benefit of eradicating my defaulted loans, which upped my credit score and made me eligible for student financial aid again.  It also resets the grace period and under income contingent repayment, the payments will fluctuate depending on your income.  Definitely a perk!

You can see more information about it here: http://loanconsolidation.ed.gov/

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