Student debt is one of the biggest obstacles when it comes to obtaining a home loan. Thousands of veterans return home from combat every year only to face a mountain of student debt. But veterans don’t have to let student loans stand in their way of homeownership.
Thanks to the Public Service Loan Forgiveness Program, members of the military who have been employed by the military or a qualifying civilian job could have their student loans fully forgiven.
Here are a few civilian jobs that qualify:
- Government organizations at any level (federal, state, local, or tribal)
- Not-for-profit organizations that are tax-exempt under Section 501(c)(3) of the Internal Revenue Code
- Other types of not-for-profit organizations that provide certain types of qualifying public services, such as early childhood development.
You need to be employed by the military or in one of these civilian fields full time, which is 30 hours a week or more. If you are employed in more than one qualifying part-time job at the same time, you may meet the full-time employment requirement if you work a combined average of at least 30 hours per week with your employers.
The Public Service Loan Forgiveness Program allows you to discharge your student debt completely, even after is has been consolidated. But it is important to not let student loan forgiveness damage your credit.
You are still required to make payment for the first 10 years, but after that, any remaining balance will be forgiven. This is a great program for veterans who wish to pursue advanced degrees. Unfortunately, private student loans are excluded from this program.
If you already have student debt and are interested in joining the military in an active-duty role, there is a program called The Military College Loan Repayment Program. This program has several requirements to qualify but allows for student loan debt forgiveness up to $65,000.
A recent survey said student loan debt was one of the biggest barriers to homeownership. Once your student debt is forgiven, your odds of qualifying for a mortgage could improve dramatically.
To find out if you qualify for a home loan, call us at (888) 320-7888 now or click the APPLY NOW link to your right.
Sources:
https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation/public-service
http://www.consumerfinance.gov/blog/veterans-dont-let-student-loan-forgiveness-damage-your-credit/
http://www.neighborworks.org/Student-loan-debt-is-obstacle-to-homeownership
