Federal Consolidation Program
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Single Lender List Job Aid
Federal guidelines state if all of a borrower’s FFELP loans are held by a single lender, the borrower must first seek a federal consolidation through that lender. Many FFELP lenders that hold all of a borrower’s FFELP loans will not release those loans to another lender for consolidation; many borrowers cannot choose with whom they wish to consolidate, even if their current lender’s product or customer service is unacceptable.
It is the lender’s choice whether or not to invoke the Single Lender Rule.
Many lenders have several subsidiary lenders that are under their ownership umbrella. These lenders will not release a borrower’s loans unless the borrower has another FFELP lender outside of their ownership umbrella. If all of the borrower’s lenders fall under a specific umbrella, it does not matter who the servicers are.
NSLDS is used by Loan Processing and by most servicers to determine eligibility. If a servicer rejects an application because of multiple lender criteria, the burden of proving that multiple lenders exist falls upon the borrower.
Multiple Lenders are not required on spousal applications when the lender is US Bank national Association, trustee for Collegiate Funding Services of Delaware, LLC.