Does anyone know if it's possible to go ahead and consolidate school loans while in the process of a chapter 7 BK? Most loans are in forbearance with Sallie Mae- up for repayment in Sept. I would like to consolidate before then to lock in low interest rates. I am unsure as to whether the automatic stay would prohibit me from this. Does anyone know?

Thanks! I know I don't post often, but I'm practically always on the boards reading! They are so helpful!

Should I post this in the BK forum?

I could not refi mine, but mine weren't through Sallie Mae.

You couldn't because they wouldn't let you? or what?

What/how did you go about asking? What was their response? Did you continue to pay as agreed?

Seems to me that they would let you- especially since you have to pay at some point. Hmm...need to find out more about this.

The SL holder at the time wouldn't let me. Said it was in BK, and declined my consolidation because of that. I wasn't paying at the time as I was still in school

I am pretty sure you can't. When in BK, your student loan goes into a suspended/lockbox status. Basically all they can do is apply payments. Collectors/CSR reps cant even access the accounts.

The SL's I want to consolidate are in Forbearance until Sept. My 341 is 4/29 so hopefully I will be discharged before September.

What do you think the odds are that I will be able to consolidate before I have to start paying? Also, I think the rates are supposed to go up again in July...did I screw myself by filing before consolidating? dammit!

There is just way too much ambiguity out there. It is so frustrating.

thanks for the responses...

I consolidated during my bankruptcy but I filed Ch 13. Different rules may apply.