I consolidated my and my wife's stuudent loans about 2 years ago. I took advantage of the reductions (.25% I believe) for automatic payments, and after a year's worth of on time payments there was to be another interest rate reduction (.8% I believe). About 3 or 4 months ago I got a letter from Direct Loans stating that the .8% reduction was not going to be honored since this would make the interest rate drop more than allowed by law. Is this even legal? And if they are not going to honor their part of the consolidation, then can I some how nullify the consolidation and reconsolidate at the current rates some how? By the way, all of the payments have been made on time and in full so there are no late problems or anything like that. Any advice would be appreciated.