Students and their families have until July 1, 2006 to contact their senators to end the Single Lender (Holder) Rule. This rule prevents student borrowers from consolidating their college loans with other lenders for better benefits. It also prohibits borrowers from reconsolidating in order to receive better terms. Eliminating the rule will give students and their families the opportunity to search for better rates and benefits, thus making it easier to pay off their debt.

The U.S. House of Representatives on March 30 voted to extend for six years the Higher Education Act of 1965. The bill called the College Access and Opportunity Act, or H.R. 609, includes a student loan provision that would repeal the single holder rule. Other items include the reauthorization of financial aid through 2012, student loan forgiveness provided for service in areas of national need, and a requirement for lenders that consolidate to provide more information to borrowers.

Although H.R. 609 included the elimination of the single holder rule, it only is in force for those student loans received on or after July 1. Therefore, the single holder rule remains in effect for the next three months, which negatively impacts student borrowers