Graduate in August

[John S.]

Ok here's the story

I got my undergrad degree in 2002. I had $40,000 in loans. I paid monthly never a problem. I filed bankruptcy in 2005 but obviously kept my loans. I am now graduating from my Master's Program in August. I will add another $25,000 in loans. My $40,000 is almost all consolidated with direct loan servicing. I have $8,000 in a key bank loan that wouldn't consolidate. Now I have this $25,000 from Sallae Mae. What is my best bet to get everything consolidated and a reasonable payment? I am a teacher, so even with my degree, I only get a $3,000 increase. Thanks a ton for all the help!

 

John Shoemaker

www.mrshoemaker.com

[Cynic]

Consolidate with Direct Loans would be my 1st guess.

 

The private loans you'll have to pay off by themselves.

[John S.]

Can Sallae Mae loans consolidate into direct or no?

[LynnInMN]

Can Sallae Mae loans consolidate into direct or no?

 

Yes.

[John S.]

Will I have a problem consolidating into my direct loans because of the bankruptcy? Will they have to pull credit and stuff? I have a pretty good interest rate now with my direct loans; I'd hate to lose that if I reconsolidated.

[LynnInMN]

Will I have a problem consolidating into my direct loans because of the bankruptcy?

No....federal loans are not credit based.

 

Will they have to pull credit and stuff? I have a pretty good interest rate now with my direct loans; I'd hate to lose that if I reconsolidated.

Your new interest rate would be a weighted balance of what you currently have.