Getting Student Loans w/ a Mortgage - Advice

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Topic Author
milkandrelish
Posts: 44
Joined: Fri Aug 16, 2013 1:43 pm

Getting Student Loans w/ a Mortgage - Advice

Post by milkandrelish »

Hi All,

I haven't been able to find much of anything relating to getting student loans when I have a mortgage.

I purchased a house this year, and also decided that I want to go back to school in a few years (not great timing, but it is what it is and I want to figure out how best to proceed). I'm currently living in the home I purchased and renting out extra space to 2 tenants. I want to go to Physical Therapy school which will have a hefty bill and is 3 years long. I will be unable to work during Physical Therapy school. Not counting the income from my tenants, I am at an almost 50% debt-to-income ratio due to my mortgage.

My questions are as follows:

1) Can I qualify for student loans even though I am maxed out on my debt-to-income ratio with my mortgage?
2) Should I report my income from tenants to help off-set this?
3) Any more advice/anyone else have or had a similar situation?

Thank you!
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market timer
Posts: 6535
Joined: Tue Aug 21, 2007 1:42 am

Re: Getting Student Loans w/ a Mortgage - Advice

Post by market timer »

For Federal student loans, I believe your ability to repay is not considered in making the decision to lend. As long as you get into the school, the government will give you loans up to the cost of attendance.
Topic Author
milkandrelish
Posts: 44
Joined: Fri Aug 16, 2013 1:43 pm

Re: Getting Student Loans w/ a Mortgage - Advice

Post by milkandrelish »

market timer wrote:For Federal student loans, I believe your ability to repay is not considered in making the decision to lend. As long as you get into the school, the government will give you loans up to the cost of attendance.
Interesting and good to know. I'm worried that federal student loans won't fully cover the cost of tuition so I may be forced to find private loans, which I know will look at DTI ratio.

In this case, does renting to tenants that live with me count towards my income if reported for 2 years?
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market timer
Posts: 6535
Joined: Tue Aug 21, 2007 1:42 am

Re: Getting Student Loans w/ a Mortgage - Advice

Post by market timer »

milkandrelish wrote:
market timer wrote:For Federal student loans, I believe your ability to repay is not considered in making the decision to lend. As long as you get into the school, the government will give you loans up to the cost of attendance.
Interesting and good to know. I'm worried that federal student loans won't fully cover the cost of tuition so I may be forced to find private loans, which I know will look at DTI ratio.

In this case, does renting to tenants that live with me count towards my income if reported for 2 years?
Federal loans should cover tuition + normal living expenses. Sometime in the past decade the hard limit was removed on the amount you could borrow per year, and the cap is now the total cost of attendance. This info should be on the financial aid section of the university's website.

Private lenders will look at credit score and DTI, so income from tenants might reduce your interest rate or allow you to borrow more. Check with a lender like Citibank if you are concerned. First, though, I'd check the amount you can borrow from the government.
Topic Author
milkandrelish
Posts: 44
Joined: Fri Aug 16, 2013 1:43 pm

Re: Getting Student Loans w/ a Mortgage - Advice

Post by milkandrelish »

market timer wrote:
milkandrelish wrote:
market timer wrote:For Federal student loans, I believe your ability to repay is not considered in making the decision to lend. As long as you get into the school, the government will give you loans up to the cost of attendance.
Interesting and good to know. I'm worried that federal student loans won't fully cover the cost of tuition so I may be forced to find private loans, which I know will look at DTI ratio.

In this case, does renting to tenants that live with me count towards my income if reported for 2 years?
Federal loans should cover tuition + normal living expenses. Sometime in the past decade the hard limit was removed on the amount you could borrow per year, and the cap is now the total cost of attendance. This info should be on the financial aid section of the university's website.

Private lenders will look at credit score and DTI, so income from tenants might reduce your interest rate or allow you to borrow more. Check with a lender like Citibank if you are concerned. First, though, I'd check the amount you can borrow from the government.
Perfect- thanks for this!
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