Congress approved legislation repealing the "single holder rule" for student loans that forced students who borrowed all of their federal loans from one lender to consolidate with the same lender.
The bill will allow borrowers to shop around for the best loan deal just as the rate on Stafford and PLUS loans is scheduled to rise to their second-highest rate on record.
On July 1, Stafford loans with adjustable rates will rise by 1.84% to 7.14%; and Stafford loans for students in school will increase by the same amount to 6.54%. PLUS loans for parents who borrowed for their children will rise from 6.1% to 7.94%.
