Students and parents can consolidate their loans at any lender, even if all of their loans are of a single lender. (The sole holder rule was repealed on June 15, 2006, under the Emergency Supplemental Appropriations Act of 2006. Borrowers no longer need to exploit the sole holder rule gaps in order to consolidate with a lender.) Direct loans can be consolidated with a lender. This allows you to shop for a lender that offers a lower rate or higher discounts.
Most lenders require a minimum balance before they will consolidate your loans. For example, many lenders offer only consolidation loans for borrowers with loan balances of at least $ 7500. Some lenders offer consolidation loans for balances of $ 5000 or more, and the Federal Direct Consolidation Loan program has no minimum balance for consolidation loans. (Lenders may not discriminate against borrowers who seek consolidation loans based on the number / type of student loans, the type / class of the institution, the interest rate on loans , or the kind of repayment schedule requested by the borrower. Lenders are, however, able to discriminate on the basis of the amount of loans being consolidated, so lenders may set a minimum balance on the loans. )
