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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2822
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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I began student loan repayment in 1997. I consolidated my

Customer Question

I began student loan repayment in 1997. I consolidated my loans because I had multiple rates (none of which were variable.) I had a repayment interest of 7.75% Unfortunately my husband and I declared bankruptcy. When that was finished and I had to start repaying my loans the new company now has me listed at 9% interest. I thought that fixed rate loans were supposed to remain fixed no matter how many times the loan company chooses to sell them. Is there a law I don't know about?
JA: What state are you in? And has anything been officially filed?
Customer: Pennsylvania
JA: Has anything been filed or reported?
Customer: The bankruptcy has already been discharged
JA: Anything else you want the lawyer to know before I connect you?
Customer: no
Submitted: 1 month ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 1 month ago.

Read the terms of the refinance/consolidation again. If there was no provision to change the interest rate, then send a copy of that agreement to the new loan holder, as they may have marked it wrong on their end.

Any subsequent servicers of the loan have to abide by the terms of your loan contract.

You can also file a complaint with your state's attorney office if they are unilaterally changing the loan terms.

Finally, if it comes to the end of the loan and you have paid all of the contractually required amounts, and they fail to issue the satisfaction, you could sue for specific performance of that contract. Hopefully it won't have to go that far. Reading the contract should provide all the pertinent information, including any default or bankruptcy provisions. You can also have a local attorney review the loan contracts for you as well

let me know if you have any other questions.

Expert:  Terry L. replied 1 month ago.

Following up, did you have any other questions? If not, please rate my answer 5 stars so I can get credit for answering. thanks

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