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"Assignment" is a confusing concept unless you have the benefit of a legal education (like W505a). Loan contracts typically include language which allows the original lender to transfer (or assign) the debt to ANYONE. Even without an "assignment clause" a lender can generally "sell" your note (loan contract) to someone else who then has the right to collect your debt. If you still have copies of your student loan contracts you will find a section with the words (Successers and Assigns) - most likely it's almost the last part of the agreement - section 17 or some such.. When you signed the agreement this seemed like unnecessaary and irrelevant "fine-print" like you see on the flip side of a car rental agreement. However - it allowed your lender to sell your loan to anyone at anytime without your permission - so long as you are "later" informed/notified of the transfer. Why Sallie Mae ended up owning your paper/debt is another question. I suspect Sallie Mae is very active is soliciting assignment of delinquent student loans...It is probably critical to their business strategy.

IMHO the real problem with allowing "assignment" of student loans is that borrowers can easily lose track of their payment records - and there is no central clearing/recording house to track this data.
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