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If you had "Rehabilitated" your loan with the Department of Education before you consolidated, the fees would have been dropped. But once you consolidate, all outstanding interest and fees are rolled up into the consolidation loan.

You may want to contact the Student Loan Ombudsman. I doubt they'll be able to rehabilitate your loan after-the-fact, but it may be worth a try.


Interestingly, I have tried to work with the Ombudsman. Apparently the Chicago Regional Director of the student loan division personally spiked my rehabilitation, then added about $10,000 in additionaly fees. The Ombudsman told me my "only choice" was to consolidate, and the consolidation is with the Dept. of Ed. and with their knowledge that I dispute the loans. Unfortunately, in five years of trying, I haven't been able to get them to prove that these are even my loans I'm paying.
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