20 years ago our parents’ generation knew that if they could hold down a steady job and pay their bills on time they would, more than likely, be able to buy a house. This was an expected right of passage into adulthood.
Now, the expectation of buying a house in your twenties is becoming more and more unattainable with the increasing need to finance college loans.
Minnesota ranks in the top 5 states of highest student debt, with averages above $30,000/person. This means that 70% of students that walk across that stage to receive their diplomas are also walking out with thousands of dollars in debt.
I don’t say this to scare you. I say this so you know you are not alone. College is still one of the best ways to make a sustainable living throughout your life. Though it may be delaying your options for buying a house or starting a family the way your parents may have done in their twenties. It is not impossible.
To buy a house with ugly student loan debt you must first determine what percentage of your income needs to go towards paying of the student loans each month. You are at a greater risk of being denied for a mortgage if over 30% of your income is required for paying off debts. Federal student loans offer different repayment options that include income-based plans so as to determine your payments based on how much money you earn now, instead of how much money you owe. If you have private loans make an attempt to communicate with your lender to create a mutually beneficial payment plan. You may be surprised by how much people are willing to help, you just have to be willing to call!
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