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I've worked for a high-needs public school for many years, and finally received notice the state would be paying off my student loan debt. Last summer, they paid $6k and they will pay the remaining $6k this summer. These are all federal loans.

The state says "Please provide us the name of ONE loan provider and ONE account number" to pay off.

The problem I'm experiencing is I just got one notice saying part of my loan was bought by anther provider...so $2000 is being moved out anytime soon to another account...

I tried fixing the above issue with consolidation, but after applying, I received notice that the provider I consolidated with will now be selling the loan to yet another provider...

I contacted the state, they just told me give current account info, and send an E-mail with a new account number if I get it consolidated...but that isn't helping much as the money seems bounding around. The state also said if I give the wrong account number, I've lost my chance for loan repayment.

In other words, my money is bouncing around, I'm trying to tie it all down, and have to give the state a single account number, don't know precisely the date the state will pay money to my account, and if I don't get the right account number, I've lost out!

I contacted one provider, they gave me a generic sounding account, run by the U.S. Department of Education in St. Louis. If I give this account # to the state, will the U.S. Department of Education be able to distribute the funds to whichever provider is holding the money?

How do I make sure my loan repayment gets paid off with all this ridiculous buying/selling of my loans going on?

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  • I don't think you can, and your State setting up this unreasonable demand is just trying to avoid spending the money. Have you heard of Franz Kafka? A nice fellow.
    – littleadv
    Apr 10, 2022 at 21:31
  • You might be exaggerating the amount of shuffling. It's common (at least for mortgages) for the loan originator to sell the loan to another entity. Is there any indication that the buyer of your consolidation won't hold the loan for the foreseeable future?
    – chepner
    Apr 11, 2022 at 19:05
  • How am I exaggerating the shuffling? I got two letters in one month about loans being sold! The company I tried consolidating to told me the consolidated loan itself would be sold! They haven't even finished the process of consolidating the loan!
    – Village
    Apr 16, 2022 at 13:36

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I contacted the state, they just told me give current account info, and send an E-mail with a new account number if I get it consolidated...but that isn't helping much as the money seems bounding around.

I would get this in writing.

How fast does your loan keep getting sold?

Maybe get a hold of your current lender and explain the repayment situation. This might incentivize them to hold your loan for a certain period if they anticipate payment.

The state also said if I give the wrong account number, I've lost my chance for loan repayment.

Well this completely contradicts the former statement. Maybe this is only applicable if you're trying to be deceitful and give them an account number which is not yours?

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  • "How fast does your loan keep getting sold?" In just this month, I got two letters...
    – Village
    Apr 16, 2022 at 13:35
  • "Well this completely contradicts the former statement. Maybe this is only applicable if you're trying to be deceitful and give them an account number which is not yours?" I think their point is, they are too lazy to put the money into multiple accounts, and too lazy to correct a problem if I made a mistake and wrote the account number incorrectly. And laziness is just their policy.
    – Village
    Apr 16, 2022 at 13:45

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