Students Will Soon Have More Freedom to Refinance Loans

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House votes to repeal “single holder” rule.

The House of Representatives today passed the Emergency Supplemental Appropriations bill (H.R. 4939) which includes a provision repealing the controversial “single holder” rule. First enacted in 1986, the rule restricts the ability of borrowers with multiple federal student loans from one lender to refinance with another. The rule has come under increased scrutiny by student groups, lawmakers in Congress, schools, and leading consolidation lenders—who have characterized it as anti-competitive because of the way it limits competition in the student loan marketplace.

“The repeal of the single holder rule will be a great victory for anyone who needs help in managing their student loan debt,” said Chris Studer, president and CEO of ScholarPoint Financial, Inc. “Millions of borrowers have been denied the advantages of a free market system for far too long. Soon everyone will be able to consolidate their student loans with the lender of their choice—a choice they will now be free to make based on factors important to their individual situation, not a choice mandated by legislation.”

The Senate is expected to pass their version of the bill later this week. President Bush would then likely sign it into law shortly thereafter, immediately enacting the repeal.

“The repeal will come at a time when many borrowers really need it,” said Studer. “With the recently announced increase in variable interest rates going to effect on July 1, almost all borrowers who act quickly will now have the opportunity to choose the best source to consolidate their loans and lock in the lowest possible rates.”

ScholarPoint Financial, Inc. is a national online consumer lending company specializing in student loans and offering a full range of innovative education finance solutions. Loan options for students and their families include PLUS, Stafford, Consolidation and Private loans. ScholarPoint combines industry-leading borrower benefits, best-in-class service and innovative technology. Unlike many other traditional loan sites, ScholarPoint’s technology platform was designed exclusively for its website, integrating the entire process for an online experience that is simple, instant, and complete.

http://www.ScholarPoint.com

Contact:

Joan Coyle

202-289-3903

jcoyle @ wpllc.net

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