I would consolidate the loans to lower them to 350 a month and then work on paying them off early.
In regards to the house. With a 37,500 income, I would use NO MORE THEN 20% of my gross monthly income for housing.
This works out to a loan payment of 625 a month. At 5%, 30 years, this would be a loan of 100,000. Plus your downpayment. Plus closing costs of around 3%. GET THE SELLER TO PAY ALL YOUR CLOSING when you make the offer.
Downpayment: Do NOT use all the 28k for downpayment. Keep some in the bank and then continue to save.
Depending on the house price, I would go with FHA, with 3.5% down. Yes, there is PMI, but it's tax deductable.