cancel
Showing results for 
Search instead for 
Did you mean: 

Paying off student loans

Auto Loans for ANY Credit Situation. Immediate Response.
Advertiser disclosure
New Visitor

Paying off student loans

Hello I am wondering what is the fastest way to pay off student loans? I am trying to get the balance down to qualify for a mortgage.
Message 1 of 5
4 REPLIES 4
Valued Contributor

Re: Paying off student loans

Did someone tell you that you needed to get your SL down?

Generally, SLs are kind of ignored with the exception of the monthly payment.

 

If your SL is your ONLY debt, then I would pay them by:

     Paying all minimums first.

     Then paying extra towards the highest APR loan and the smallest balance loan.

 

This makes financial sense and also gives you a sense of accomplishment.

 

If you have ANY other debt, I would pay the SL minimum only and apply extra towards ANY other debt first.

 

GL!

Rebuild started in 2014  -  $100k+ unsecured credit in 2017  -  $300k+ unsecured credit in 2019.

DON'T WORK FOR CREDIT CARDS ... MAKE CREDIT CARDS WORK FOR YOU!

10% Rotating - Discover                    5%-20% - Amazon & Lowes                3-6% Groceries - NFCU & Amex Preferred
3-5% Gas - NFCU & Ducks Unl         4% Dining & Entertain - Savor            3% Travel & Hotels - Flagship, Propel, & Uber
2% Everything Else - Flagship          1% Cancer Charity - Fifth Third          0% Finance Promos - Venture & QuickSilver





        
Message 2 of 5
Highlighted
New Visitor

Re: Paying off student loans

Thank you. Yes I was told my debt to income ratio was too high so I need to pay down some loans or get another full time job. I'm actually trying to see which one I can get faster .
Message 3 of 5
Valued Contributor

Re: Paying off student loans

I would get some more advice.

Your SLs payment should be very small compared to the debt.  

They should be looking at your monthly payments, not your balance.

If your SLs were totalling $100k , your payment could literally only go down like $200 - $400 per month if you paid $50k off.

 

Something does not make sense or you are looking at a house that is just too much to budget for.

 

Rebuild started in 2014  -  $100k+ unsecured credit in 2017  -  $300k+ unsecured credit in 2019.

DON'T WORK FOR CREDIT CARDS ... MAKE CREDIT CARDS WORK FOR YOU!

10% Rotating - Discover                    5%-20% - Amazon & Lowes                3-6% Groceries - NFCU & Amex Preferred
3-5% Gas - NFCU & Ducks Unl         4% Dining & Entertain - Savor            3% Travel & Hotels - Flagship, Propel, & Uber
2% Everything Else - Flagship          1% Cancer Charity - Fifth Third          0% Finance Promos - Venture & QuickSilver





        
Message 4 of 5
Community Leader
Valued Contributor

Re: Paying off student loans

I think this person is only telling you the partial truth. Telling someone to get a second full time job is sort of ridiculous. I don't know much about this as I haven't done it, but we're you looking at a conventional loan? FHA loans have very different requirements. For example, if you have a federal loan and are on an Income-driven repayment plan, they are not concerned with your monthly payment than your overall student loan amount. This has allowed many people with significant student loans to get mortgages in a very decent amount.
My suggestion is that you talk to someone else, maybe at a credit union. They should be able to talk you through the different loan types and what they will require. There are also several threads on this very topic under the mortgage thread and some very helpful people that can answer your questions in more detail. I would just suggest that you get more information before you pay down the loan or something.



Message 5 of 5
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.