Buying a House vs. Paying Student Loan Debt

by DeLadurantey Law Office, LLC on June 26, 2014

Falling money and house high-res-xxlMany college graduates are paying several hundred dollars every month toward paying off their student loan. As a result, they are unable to qualify for a mortgage to buy a new home. The impact on the real estate market and other areas has been significant.

Steps are being taken to find a solution to our country’s overwhelming student loan debt, but there is no easy answer. U.S. Senator Elizabeth Warren (D-Mass.) has proposed a bill that would allow student loan borrowers the ability to refinance their balances at lower interest rates. For a student that is currently paying approximately seven percent interest, a drop down to three to four percent interest rate means huge savings. In addition to supporting Warren’s bill, President Obama has issued an executive order to expand a program easing student-loan payments.

The Democrats control 55 seats and 60 votes are needed for Warren’s bill to proceed. Thus, it will require the support of at least five Republicans. The objections to the bill include the fact it doesn’t assist current or future students and allegations that it is a tax increase bill disguised as a student loan bill.

There are other student loan programs at work and all lawmakers can agree that it is a significant problem for our economy. Very few eighteen year old students understand the financial commitment they are making when they take out their student loan. Making monthly payments and barely making progress on paying of your loan can be exhausting and burdensome. Most graduates are delaying buying a house, starting a family and many other important decisions due to their student loan debt.

If you are feeling burdened by your student loan debt, let us help.

The “defender of the little guy,” DeLadurantey Law Office, LLC, handles student loan debt and bankruptcy matters (Chapter 7 and Chapter 13) in Milwaukee, South Milwaukee, West Milwaukee, and Milwaukee County, including the municipalities of Bayside, Brown Deer, Cudahy, Fox Point, Franklin, Glendale, Greendale, Greenfield, Hales Corners, Oak Creek, River Hills, Shorewood, St. Francis, Wauwatosa, West Allis, and Whitefish Bay. The firm also can handle your debt negotiations, debt relief, and mortgage loan modifications.   Contact DeLadurantey Law Office, LLC by phone: (414) 377-0518. Like us on Facebook.

 

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