The repeal of the single-holder rule for higher education loan borrowers is translating to a boost in prepayment speeds on student loan ABS, according to several market sources.

Earlier this month, President George W. Bush signed the Emergency Supplemental Appropriations Act for Defense, the Global War on Terror and Hurricane Recovery legislation. It included a provision that allows borrowers with several student loans to consolidate them with any lender they choose. Previously, borrowers were only allowed to consolidate loans with the same lender that provided the loans.

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