Has Student Loan Debt Put Your Home Purchase Out of Reach?

Student Loan Refinancing

Fortunately, there are options.

If your student loan debt is causing you to postpone significant life events – like buying a home – you’re not alone. Nearly one third of those who haven’t yet purchased their first home point to their student loans as a reason for the delay.1

Student loan debt affects not only your ability to secure a mortgage, but also your mortgage rate. Your outstanding loans impact your debt-to-income ratio, which lenders use to determine how much mortgage debt you can assume. Your payment history also affects your credit score, which influences mortgage lending decisions.

Despite the challenges, it is possible to secure a mortgage while juggling student debt:

  • Evaluate your repayment options. If you have federal loans, consider an income-driven plan that lowers your monthly payments.
  • Explore refinancing your federal or private student loans to lower your monthly payments.
  • Avoid loan forbearance, which may signal financial hardship.2 One notable exception is the Department of Education’s student loan payment pause which extends to January 31, 2022.3

If you’re among the many in the market for a home, but finding yourself challenged by student loan debt, learn more about securing a mortgage while managing your student loans.

The Alumni Benefits ProgramSM can help. We offer student loan refinancing and mortgage lending, both with rate discounts for alumni and their families.

Learn more about student loan refinancing

Learn more about mortgage lending


1The Impact of Student Loan Debt,” National Association of Realtors, September 2021.

2“Student debt can make buying a home feel impossible. Here are your options, CNBC, September 17, 2021: https://www.cnbc.com/2021/09/17/student-debt-is-a-main-obstacle-for-millennials-wanting-to-buy-a-house.html

3Current as of October 2021

Learn more about Mortgage Lending.

Learn more about Student Loan Refinancing


Student Loan Freeze Extended Again – What Should You Do Now?

Student Loan Freeze Extended Again – What Should You Do Now?

Use this time to re-evaluate your plan. The Biden administration recently extended the student loan repayment freeze through ...
Continue Reading
Tips for a Happy Vacation in 2022

Tips for a Happy Vacation in 2022

Making travel plans can brighten your mood. As we start making up for lost vacation time, it's not ...
Continue Reading
Is Spring Still a Good Time to Sell Your Home?

Is Spring Still a Good Time to Sell Your Home?

Selling your home begins with determining the best time to put it on the market. For most of ...
Continue Reading