Re:How Student Debt Reduces Lifetime Wealth
by Y7ZCQtNo39 on Sunday June 18, 2017 @09:36PM
(#14584063)
Sorry for your experience, that sounds terrible. But would've a student loan stop you from pursuing that mortgage? Certainly not in 2008, when they'd lend to anybody; but today, when the conforming standards are less relaxed? It's not going to be the student loan that makes or breaks you; it will be your assessed ability to repay, which means having a stable, high enough income to afford the repayment with some wiggle room (you know, debt-to-income ratios, etc).
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Re:How Student Debt Reduces Lifetime Wealth
by abalashov on Sunday June 18, 2017 @09:46PM
(#14584107)
That really depends on the size of the loan, the APR and the monthly payment. But for a fair number of folk I know, the relatively high monthly student loan payment is material enough to impact their debt-income ratio and kick their monthly disposable income underneath the threshold required for today's tighter underwriting requirements.
Of course, having learnt the lesson I did in the particular way I did, I'm not convinced that owning real estate is a particularly good course of action for most young people anyway. Unfortunately, we've got policy incentives that heavily skew toward owning over renting, mainly the mortgage interest tax deduction. That was my reasoning for buying: "A mostly tax-deductible monthly housing payment? Sounds good to me!"