Ignite FB Tracking PixelPaying Off School Debt to Afford a Mortgage - Martha Erickson
Paying Off School Debt to Afford a Mortgage

by Martha Erickson 02/11/2019

The cost to attend university continues to rise, putting pressure on students to afford an education. While some universities assist their students, many raise their prices to contend with operating costs. As a result, students leave school with mounds of debt that impede their quality of life. Paying off student loans starts by laying the appropriate groundwork, which gives you the best chance at success. 

Where to Start

Begin by identifying the type of student loans you have. Most often, you have either private or government student loans. The difference between them dictates the various options available to eliminate your debt. Now that you've identified your student loan type start with the government student loan. 

Government Loans

Government loans offer a variety of payment options based on factors such as your income and ability to pay. To more effectively make your student loan payments, request the payment plan that fits your financial situation. When you do receive extra money—like that birthday gift from Great-Aunt Daisy—apply it to your principal balance. You'll speed up the loan elimination process. By using the right payment plan, you balance your debt elimination with financial well being.

Private Loans

The payment plans for private student loans are difficult to adjust. One method to consider is refinancing to a lower interest rate. By refinancing your loan, you may lower your monthly payments. If you continue making more substantial payments on your refinanced note, you'll eliminate the principal balance at a faster rate. 

If you find yourself looking to refinance, shop around. Several companies specialize in student loan refinancing. By lowering your interest rate, you save money and can use that extra money toward principal payments, ultimately eliminating your student loans faster.

Finally, once you set a repayment plan, increase your principal payments through a second job or side-gig. Lyft, eBay, Instacart, and other flexible part-time options make increasing your outside income possible. Eliminating student loan debt is difficult, but certainly possible. With minor tweaks and adjustments, you will find the right path for you. 

Once you clear your student debt, you will have extra income for items such as saving for a down payment on a home. Purchasing a home is arguably the most significant asset for most people. By eliminating student debt, you can focus on home buying. To see if you qualify for a mortgage despite your school debt, reach out to a mortgage broker or loan officer.

About the Author

Author
Martha Erickson
Long time Marco Island residents Martha & Roy joined Berkshire Hathaway Florida Realty (originally Prudential Florida Realty) in 2001. Roy retired in 2016. Martha continues to be a very active realtor and has marketed condominiums, homes, and homesites throughout Marco Island and Naples. She specializes in Hideaway Beach. Martha’s knowledge of customer relations and services, after many years in retail and advertising, combine to create a positive experience for her customers buying and selling a property. The Erickson Team have been recipients of various awards including Chairman’s Circle Gold, which is awarded to the top 2% of Berkshire Hathaway Agents. BHHS National Honor Society and the President’s Leading Edge Award. Martha has also been named a FIVE STAR Real Estate Agent - Best in Client Satisfaction for the past 15 years. You won’t find anyone more qualified than The Erickson Team to help you in the sale of your property. Please consider us if you or someone you know is ready to make a move. Martha is ready to assist you with your Real Estate needs. Martha Erickson, Realtor®, GRI. CRS, SRES Designations: Luxury Home Specialist, Marco Island Specialist, eCertified, Memberships: National Association of Realtors, Florida Association of Realtors,.Marco Island Area Association of Realtors, Naples Area Board of Realtors Interests: Golf, boating, travel, reading Email: [email protected] Cell phone: 239-272-0912