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Students' loans still can be consolidated


Date published: 12/30/2013

In a letter dated Dec. 23, Edward Taylor wrote about trying to consolidate his granddaughter's student loans. He said, "a very gracious woman at a large bank told me they are now prohibited by federal law put in place by the White House, to consolidate any federal student loans." He went on to say he hoped college students who voted for the president understand how he has "helped" you.

Mr. Taylor's granddaughter can consolidate her student loans into the Federal Direct Loan Consolidation program. When borrowers ask their bank about consolidating loans, the bank may not tell them they can still consolidate through the direct loan program because the bank will lose the loan when the borrower consolidates into the direct loan program. This may have happened to Mr. Taylor.

The implication that the White House "passed a law" to disadvantage student borrowers is likewise incorrect.

Steve McNamara

Spotsylvania