Hi there. I took out about $70,000 in student loans for a BA and a Master's (and a $8000 travel abroad semester), had them put on the Income Contingent Repayment plan and had a payment of $0 for about 6 years (while the interest kept accruing). I currently have a payment of $133 a month. Everything's up to date and fine, other than the insane amount of money I'll never be able to repay. 
My question is, how does a situation like this impact a mortgage application? Do they just look at the monthly payment, or will they factor in the actual amount owed? My husband and I want to apply next May for a mortgage, and if necessary, he could apply on his own (I only work part-time and my income is $900 a month - though it would be nice to add this to our income, of course). My monthly payment will always be a percentage of my income, so it's not going to suddenly go up drastically or anything.
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webhopper wrote:
They will look at the payment; not how much is owed. Have you looked into doing social work or like a program where your loans would be forgiven after working 5 yrs with disadvantaged children or something like that? It seems like those type of programs would benefit you.
That's interesting. I'm a psychologist and didn't know that this was even possible! Maybe something I should consider at some point.
And good to know about the student loans. I have quite a few myself after 5 years of grad school!
Starting Score: EQ=567, TU=564 4/17/12 What about guidance counseling or career counseling for high school students, especially in a disadvantaged area? My guidance counselor was great when i was in high school... He encouraged my applications for various scholarships, several of which I was granted.... these people do worlds of good for kids from families where education doesn't run generations deep
Starting Score: 08/29/2011 TU 671 EQ 674Current Score (myFico + Amex): April 2013 TU 754 EQ 694 EX 694
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webhopper wrote:What about guidance counseling or career counseling for high school students, especially in a disadvantaged area? My guidance counselor was great when i was in high school... He encouraged my applications for various scholarships, several of which I was granted.... these people do worlds of good for kids from families where education doesn't run generations deep
That's actually a great idea. If you like working with the college population, high school isn't too far off in terms of maturity level, issues, etc. That age group is one of my favorites with whom to work!
To get back on topic; you wont have to worry about your loans except as the payment of that and your other loans combined payments compare on your back end dti ratio
Starting Score: 08/29/2011 TU 671 EQ 674Current Score (myFico + Amex): April 2013 TU 754 EQ 694 EX 694
Wallet: NFCU Visa Sig 25k, Amex Lowes 22k, NavCheck 15k, Amex PRG, Amex Zync, Discover It 13.5k, Amazon Visa 5k
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thankfulheart wrote:
firsttimemama wrote:
So, basically, they'll include your monthly student loan payment as part of your DTI to see if you're income is enough to pay those (and any other bills) AND your mortgage. Am I correct?Yes, that is correct. I have been told that my student loan payments will be considered even though they are in deferment. That is why it's important for me to get my consolidations done and on the IBR plan before I apply. There was no mention at all about the actual hundred grand (I like it better spelled out rather that digits screaming at me! LOL!) I still owe.
Lol. I feel the same way! What's the IBR plan?
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