Ch 7 BK-- after discharge

Anonymous · ‎08-15-2016

Hello all,

The question I have for you- I have been lurking for a bit and am excited to start SoulMasters plan once I am discharged. However- I have $75,000 in student loans from undergrad/masters.. Will I have a tougher time following the plan/getting accepted for cc's after because of debt-to-income ratio.. I only make $35,000 a year.

Thank you for your help!

Scupra · ‎08-15-2016

Different lenders will view them differently. For DTI it is the monthly payment that matters, not the total balance. I would assume you're on an income based repayment plan that will help.

Anonymous · ‎08-15-2016

Thank you Scupra for your response! I had no idea DTI was based on monthly payment not total balance, thanks. They are deferred right now, I am getting my masters in May, then going for my PhD. Thanks again!

Scupra · ‎08-15-2016

DTI is just total recurring debt divided by gross income.

In a mortgage if you have SL's differed they will use a figure of 2% of total SL balance = monthly payment. You can show what you're planned income based payments would be to get around that, but this is for when you're ready to buy a home

Good luck with your rebuild as well as chasing that PhD

Anonymous · ‎08-16-2016

The good part about having a student loan is that it serves as an installment loan to show credit mix. Good luck with your rebuild!

Scupra · ‎08-16-2016

Does it still help if deferred? Just curious

Anonymous · ‎08-17-2016

Thank you Scupra for that information! And thank you

Thank you Bella! I look forward to moving onto the next chapter of my life!

Anonymous · ‎08-17-2016

@Scupra wrote:
Does it still help if deferred? Just curious

Hi Scupra, that is a good question, and I don't know the answer immediately but I can definitely figure it out. I suspect that the student loan doesn't get reported until you enter repayment, and then if you put it back in deferment it just doesn't report. I will do some research and report back tonight.