Get out of student loan debt to improve your credit so you can buy a house.
Do you want to buy or rent a new home but can’t because your credit is bad due to student loans? Here is some good news!
President Obama made big news today for student loan borrowers. He said he’ll use his executive power to expand a program called Pay As You Earn, which limits borrowers’ monthly debt payments to 10 percent of their discretionary income. Under the program, loans don’t just get less expensive; they can actually disappear. The balance of a loan is forgiven after 20 years — 10 years if the borrower works in public service (for government or a nonprofit)….
Many of my customers, especially first time home buyers and renters are having trouble securing loans or being approved for rentals due to poor credit scores. Time and time again the only derogatory accounts negatively affecting their credit are associated with outstanding medical bills and/or student loans. If you are adversely affected by the latter please read this article as it may come in handy.