People do not like thinking about consolidating student loan debt when they are beginning their freshman year at college. At this stage, they just want the funding to pay the tuition, room, and board.
Surprisingly, having bad credit may actually help you qualify for grants and scholarships. Affording this costly expense is much easier when you do not have to repay the money.
Debt consolidations that include student loan balances can lower your monthly payment or reduce the amount of money you pay in interest – if you qualify.
Therein lies the rub for many applicants. The manner in which you finance your college education often has a profound impact on your credit report and score. It could be hard to qualify.
You can count excess financial aid as income on applications. Sometimes this helps your cause.
For example, student loan refund money deposited into your bank account can fund credit card and rental housing payments.
On the other hand, the money held in an account becomes a countable resource, which could hurt access to Medicaid.
Can you buy the house of your dreams when you have mountains of student loan debt? The answer is yes if you pay close attention to the three main mortgage underwriting criteria.
Student loans influence credit scores, the amount you can save for a down payment, and two sets of debt-to-income ratios.
Should you pay off your credit card balance by taking out a new student loan? Sometimes lenders fund more than what you need to pay for books, tuition, room, board, and other expenses.
Transferring the amounts owed has distinct advantages and disadvantages. Learn the ropes before you pull the trigger.