Support H.R. 2505 - College Loan Assistance Act of 2003

Under the Higher Education Act of 1965, a borrower is only eligible for a consolidation loan if he or she has never consolidated before. 20 U.S.C. 1078-3(a)(3). This creates a one-time consolidation rule, and bars borrowers from refinancing their consolidation loans, locking those borrowers into the market interest rate at the time of consolidation, regardless of whether rates fall later on. Most borrowers are unaware of this rule at the time they consolidate, and only find out that they cant refinance when they try to take advantage of lower interest rates.

On June 18, 2003, Congresswoman Rosa DeLauro (D-CT-3), introduced a bill in the U.S. House of Representatives: H.R. 2505, the College Loan Assistance Act of 2003. This bill, if passed, would amend the Higher Education Act to allow borrowers to refinance their consolidation loans.

We, the undersigned, support the passage of H.R. 2505. We urge you to co-sponsor and/or support the College Loan Assistance Act of 2003.