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dandoe1979
Guest
Hypothetically speaking, let's assume a person has $1,000,000 in Fed student loan. He/she makes approximately $120,000/year or $12,000/monthly. Based on the new income based student repayment option, his/her monthly student loan payment would be ~$1300/month.
Now if he/she was interested in applying for a mortgage, how does the student loan factor in? Do the lenders see the $1,000,000 that he/she owes in student loan and automatically deny them based on their income OR do the lenders just factor in the ~$1300/month, which isn't too much considering he/she makes $12,000/month?
So basically, my question is, the income based repayment option has been created to help those individuals with large debt with limited income, but by opting for this payment method, are these individuals never going to be eligible for a mortgage due to their large total student loan debt?
Now if he/she was interested in applying for a mortgage, how does the student loan factor in? Do the lenders see the $1,000,000 that he/she owes in student loan and automatically deny them based on their income OR do the lenders just factor in the ~$1300/month, which isn't too much considering he/she makes $12,000/month?
So basically, my question is, the income based repayment option has been created to help those individuals with large debt with limited income, but by opting for this payment method, are these individuals never going to be eligible for a mortgage due to their large total student loan debt?