Buying A House: How A Student Loan Can Come Back To Haunt You

by Guest Author on November 7, 2013

Buying a house requires no small amount of money. Even in a somewhat soft real estate market, buyers usually are required to have a minimum amount saved up for a down payment, and close to spotless credit to get the necessary mortgage loan. However, during the process, you may find that past debts—debts that seemed necessary at the time—may come back to haunt you. Take, for example, student loans. Most people consider a four-year education an investment in their future. A college degree does lead to a higher starting income than just a high school degree. The rising cost of universities and colleges, however, makes it more challenging for the average student to attend a four-year school without some sort of assistance. Most students and their families end up turning to student loans in order to pay for tuition, books, room and board and other essentials—borrowing up to $25,000 over the course of the four years.

These loans come due (with the occasional opportunity for deferment) upon graduation. With compound interest and a weak economy, a new graduate may be paying off this student loan for decades. And this on-going debt can lower your credit score, decreasing your chances at a successful application for a mortgage loan. It also interferes with your ability to save money for that important down payment. Learn more about student loan debt and how it will affect your financial security in the long run from this infographic by Consolidated Credit.

{ 1 comment… read it below or add one }

Ngan September 25, 2014 at 5:13 am

This site was… how do you say it? Relevant!!
Finally I’ve found something that helped me. Kudos!


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