Low Student Loan Consolidation Rate, still able to discharge?
I am currently in Chapter 13 and making payments to the trustee. I have
scads of students loans from multiple lenders and a percentage of them are
being paid through the trustee. I just applied to consolidate all my student
loans with a single lender and lock in the lowest student loan interest rate
ever. Question: AM I able to consolidate my student loans while in Chapter
13 or will I have to wait until I am discharged? As I said, I already
applied to consolidate them but now I am fearful I will get a letter down
the road that says something to the effect of "since you filed for
bankruptcy.... you cannot consolidate your student loans.... etc.etc."
I do not want to wait until discharge because as I said, the student loan
interest rate is at its lowest ever right now and this would be a fixed rate
(see CNN article for more info if interested:
http://www.cnn.com/2004/EDUCATION/06/07/student.loans.ap/index.html). By the
time I am discharged, the rate will be higher and the government may change
the laws regarding student loan consolidation.
Does anyone know if I will be able to consolidate right now?
ok, clarification... when I said "a percentage of them" I meant a percentage
of my balances -- not a percentage of the lenders. So yes, all student loan
lenders are listed in Chapter 13 and being paid through the trustee (but
they are only being paid 2% of my balances).