NelNet - Full Sail - One lender consolidation problems

I have put a lot of time into researching Student loans, unfortunately
I have found out a lot about the rules after I am faced with the
problems.

I attended a college in Florida called Full Sail (ok school, little
pricy especially if you take out loans for living). From this school I
have $60,000 in loans (note above advide for loans for living). My
loans are split into two categories with the one loan company that my
previous loans were sold off to. These categories are Federal and
Alternative loans.

Just when all of my forbearance time was about to run out on these
loans I received a call from Nelnet. Turns out they are no longer
treating these loans as Student loans, other than the Federal ones are
available for consolidation. This makes it so that if I go back to
school I can not defer these loans anymore. Upon calling the company
and asking if this was just done to my account, or all of their
accounts, or just all of their Full Sail graduate accounts. The rep
informed me that this was a measure taken upon only Full Sail students.
Full Sail now uses Salley May. The reasoning for this measure was that
they were not receiving payments on the majority of loans, and were
having too many people push their loans into extended deferment.

Luckily I can pay these loans, but I will be going back to school and
would like to not have them while I am going through that. Since I have
only one lender I can not consolidate. I think I may face future
problems because I allready consolidated my Federal set of loans with
Nelnet. However I have found out that the One lender rule has an
inherant loophole. Just get another loan, with another lender, and you
should be able to consolidate all of them. From what I understand you
have to get a loan paying for at least 6 credit hours... again not a
big deal since I am going back to school.

Any suggestions on how to get these Nelnet loans consolidated before,
or with other loans that I will be taking out for school? Also I am
interested if what Nelnet did is even allowable.

David,

Not exactly clear on all your details, but see if this helps.

Your federal loans have a single lender rule, which means if they are
all taken with the same lender then when you wish to consolidate it must
first be offered to them. If they decline, then you can use any lender.

So if you take a new federal loan through another lender before you
consolidate, then you can consolidate with any lender. But you say you
already consolidated the federal loans. If so, you cannot consolidate
the same loans a second time.

As far as your non-federal alternative loans, what the company can do or
not regarding forbearance and deferments is whatever the terms of the
loan contract are. These are private loans, not government regulated.
Typically, deferments are an option that the bank can allow or decline
as they choose.


Steven B. Blank
College Financial Aid Consultants
29 Ives Hill Court
Cheshire, CT 06410
(203)250-7761


david DeleteThis @defaultdave.com wrote:
> I have put a lot of time into researching Student loans, unfortunately
> I have found out a lot about the rules after I am faced with the
> problems.
>
> I attended a college in Florida called Full Sail (ok school, little
> pricy especially if you take out loans for living). From this school I
> have $60,000 in loans (note above advide for loans for living). My
> loans are split into two categories with the one loan company that my
> previous loans were sold off to. These categories are Federal and
> Alternative loans.
>
> Just when all of my forbearance time was about to run out on these
> loans I received a call from Nelnet. Turns out they are no longer
> treating these loans as Student loans, other than the Federal ones are
> available for consolidation. This makes it so that if I go back to
> school I can not defer these loans anymore. Upon calling the company
> and asking if this was just done to my account, or all of their
> accounts, or just all of their Full Sail graduate accounts. The rep
> informed me that this was a measure taken upon only Full Sail students.
> Full Sail now uses Salley May. The reasoning for this measure was that
> they were not receiving payments on the majority of loans, and were
> having too many people push their loans into extended deferment.
>
> Luckily I can pay these loans, but I will be going back to school and
> would like to not have them while I am going through that. Since I have
> only one lender I can not consolidate. I think I may face future
> problems because I allready consolidated my Federal set of loans with
> Nelnet. However I have found out that the One lender rule has an
> inherant loophole. Just get another loan, with another lender, and you
> should be able to consolidate all of them. From what I understand you
> have to get a loan paying for at least 6 credit hours... again not a
> big deal since I am going back to school.
>
> Any suggestions on how to get these Nelnet loans consolidated before,
> or with other loans that I will be taking out for school? Also I am
> interested if what Nelnet did is even allowable.
>