Student Loans

[PNut08]

I received a letter in the mail yesterday saying that my student loans with Citibank have been sold to Discover. It specifically states in that letter that my minimum monthly payment may change. Does anyone know if Discover is going to alter interest rates on these loans or if the repayment terms will change? I'm just hoping that I don't have a huge surprise in the near future. I have private loans through Citibank at ~3.5% and owe a total amount of about $60,000. My monthly payment right now is around $500/mo. I mean, there's no way my minimum payment could double or anything, right?

[PNut08]

Also, my loans with citibank are a total of ~10 TLs on my credit report (marked SLC). Will these close and then 10 new ones open with Discover? Won't that hurt my AAoA? The tradelines with Citibank have been on my credit report for ~8 years so I imagine my CS will take a nice hit if I suddenly have 10 new TLs pop up.

[algorithmslave]

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PNut08 wrote:

Also, my loans with citibank are a total of ~10 TLs on my credit report (marked SLC). Will these close and then 10 new ones open with Discover? Won't that hurt my AAoA? The tradelines with Citibank have been on my credit report for ~8 years so I imagine my CS will take a nice hit if I suddenly have 10 new TLs pop up.

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Citi Bank first sold all my Loans to Sallie Mae but the private student loan. Just recently they sold my private loan to Discover. In my case, when this happened the account number stayed the same. History stayed the same IF the loans were in repayment. So, when I contacted Great Lakes for the Special Direct Consolidation, all eight loans from Sallie created three new accounts. I got hit with to much new credit. The private loan sold to Discover did not effect my credit good or bad. Actually, I have had a very good experience with both Discover and Great Lakes. I would love to use the private loan with Discover as a good reference for one of thier cards. 

[jonp]

When my loans were transferred they did change the minimum payment from $119 to $189.  It was my understanding that you cannot change the loan interest rates, but you could modify processing and handling fees (which was the cause of increase on my loan payment).

I don't believe they can change your interest rate, but they may be able to change your payment through other means.  Mine went up mostly due to losing discounts at my other processing company.  I was receiving a monthly discount for paying through automatic direct draft.  They also only charged me one processing fee for both "accounts."  Chase did not offer any discounts and charged fees for both types of loans.

Good luck.