Have lawyer son, (he already graduated) and considering refinancing his loans.  BUT have heard and read that occasionally the disbursed monies (which are sent by the new lender to prior lender) are sometimes not recorded or credited properly. And even if all goes well may take up to two months. Have even read BBB complaints on one major refinance lender, and some nightmare type stories involving this concern. Our current lender FedLoan offers this does not usually occur but sometimes a third party “ombudsman” is necessary to intervene and rectify. 

Can you offer any advice? All the private refinance entities, as far as I know, will only disburse the loan to the current lender.  Am not interested in HELOCs but would like to obtain better rate than the 6.55% 10 yr. fixed we have (e.g. 5 yr variable would be ideal).  As background, assume excellent credit, and more than sufficient income and assets if I cosign.

Thanks.

Dr. S