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I have a $ 30k student loan at 13.99% and over the repayment period, it will end up being over $ 90k when everything is said and done. My fiancee and I are currently looking at buying a new house, and with the interest rates as low as they are, we want to consolidate the student loan in with our mortgage. We’re thinking if we buy a house $ 30k under what we’re pre-approved for, it shouldn’t be a problem. We don’t mind a slightly higher interest rate on the home if we can lose the 14% that Sallie Mae wants to take us for. What ARE our options?

2 Thoughts on Can I consolidate my student loan with 14% interest into my new mortgage?
  1. Reply
    February 5, 2014 at 2:06 pm

    Just because you are preapproved for, let’s say $ 200K, doesn’t mean that if you buy a house for $ 150K you will get the extra $ 50K. The bank will only give you enough money to pay for the sale price of the house, and that’s what goes on the paperwork you do with the seller. There’s no legal way around that. and they write the check directly to the seller, or to the seller’s attorney. So, you won’t even get to touch that money.

    You can take out a home equity loan to pay off your student loans, if you have any equity in the house.

    But, as for consolidating it into a new mortgage, not likely. Sometimes, you can ask the bank for extra oney, through government programs, where the extra money goes into repairs of the house, etc. But you need to apply for those loans and get approved separately from your mortgage.

    I can’t imagine why a bank would give you more money, in excess of the value of your house, this day and age, unless it was through a specific program, and the money was used for a specific item, like fixing an old house. Because, if you skipped out on your payments, the bank would never be able to recoup the excess loan, even if they foreclosed your house.

    Plus, sallie mae loans are protected from bankruptcy. Let’s say you file bankruptcy, if you have a mortage, and a car payment, you would lose your house and car, but at least you wouldn’t have to pay them back, that’s part of the bankruptcy. It would screw your credit, but sometimes it’s necessary. On the other hand, even if you file bankruptcy, you still have to pay sallie mae loans back. you cannot file bankruptcy to get rid of sallie mae loans. otherwise, I’m sure alot of people would go to school and then file bankruptcy so that they didn’t have to pay back student loans. after 7 years, their credit would be okay, and they could start looknig nito buying a house. lol, what a scam that would be! sallie mae is protected from stuff like that.

    You should contact sallie mae. if you have more than one loan, you can consolidate them through several sallie mae approved programs. It will lower your interest rate. Even if you only have one loan, (which is doubtful considering how they do the loans) yo can ask for lower rates, if you apply for them. My friend pays 7% after consolidating through a sallie mae program. I had the opportunity to lower mine to 4.5% but I missed the deadline, and then got too busy to bother with it.

  2. Reply
    February 5, 2014 at 2:20 pm

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