On February 19, 2008, the United States Supreme Court ruled that it would not consider OneSimpleLoan's lawsuit against the Department of Education over the company's request for a temporary injunction of a ruling that disallows the two-step student loan consolidation process after March 31, 2006, rather than after June 30, 2006, when other student loan-related provisions of the recently-signed Deficit Reduction Omnibus Reconciliation Act of 2005 take effect.

Our lawsuit had also challenged the constitutionality of the Deficit Reduction Act of 2005 (DRA). This legislation incorporated changes to many Federal government programs including the Higher Education Act, which contained the actual student loan consolidation changes we are fighting.

The initial lawsuit was filed on April 18, 2006. Although the consolidation portion of our case was dismissed, our lawsuit was a victorious catalyst behind the June 15, 2006 repeal of the "single lender rule." This repeal was approved as part of the Emergency Supplemental Appropriations Act (i.e., H.R. 4939). This repeal means that student loan borrowers can now consolidate their student loans through a variety of student lenders and will no longer be tied to their original lender. This allows borrowers to 'shop around' to take full advantage of the consolidation offers with the most favorable terms regardless of lender.

"Although we lost the case in the U.S. Supreme Court, we are proud that we were able to help make a difference in the lives of student loan borrowers and their families," notes OneSimpleLoan President and CEO Paul J. Simino. "We will continue to be a strong advocate to help students obtain and manage their student loans before during and after college."