Question:
Hello, maybe someone can help me with some of my questions:

I'm currently making 37k a year. I've have already consolidated a student loan about 50k at an interest rate of 8.75% (held by SallieMae). Further, I have debts (credit card) of about 17k that are managed by CCCS. I make monthly payments of $400 for the student loan and about $370 for the other credit - so not really much money left over at the end of the month.

Does anyone have an idea if there is a way to reduce the interest rates of my student loan? SallieMae told me that it is not possible as I already consolidated and that there is no way to lower my interest on the loan. Is my only option to go to a bank and get a new loan (but I doubt a bank would do that)? I know that there is no way to get rid of my student loan. But is there at least a chance to get better conditions for the student loan (like lowering the interest rates)?

Answer:
You cannot do anything else to reduce the interest rates of student loans that have been consolidated, the rate is fixed at whatever it was at that time. Nor can you undo a loan consolidation once it is complete.

But is there at least a chance to get better conditions for the student loan (like lowering the interest rates)?

You are correct in that bankruptcy will not discharge student loans. Some banks are offering lower payments to those that make 12-48 monthly payments on time for consolidated loans, however this may only apply to new consolidation loan applications. Basically you are stuck with the rate you consolidated at, which is why one is advised to think carefully before going through the process. When you consolidate student loans, the old balances are paid off, then a new account (loan if you will) is created from the sum of all balances of loans to be consolidated.

Of course banks/providers are hoping one will take the new longer payment terms (20 years or so IIRC) because even if the interest rate is lower, one pays more interest over the life of the loan. Loan consolidation is basically a gamble that rates won't be lower in the future. As they are now at historic lows, many should consolidate now as one does not think they will go much lower nor return to these levels any time soon. If you are having trouble paying your loan, speak to your provider, they may offer sometime of forbearance or deferment which will give you time to sort yourself out. Failing that returning to school at least half time will allow you to defer your loans, and get some breathing room.