Student Loan Debt Statistics If you have student loan debt, you're not alone.
There is nearly $850 billion of student loan debt outstanding for borrowers age 40 or younger With student loan debt statistics like these, it's no wonder some think it's impossible to own a home when you are burdened with student loan debt.
A debt-to-income ratio is your monthly debt payments as a percentage of your monthly income.
In particular, make sure to: Pay off the balance if you have a delinquent payment Don't skip any payments Make all payments on time 4.
Get pre-approved with a lender first.
Keep credit utilization low Lenders also evaluate your credit card utilization, or your monthly credit card spending as a percentage of your credit limit.
Therefore, when you swap credit card debt for a personal loan, you can lower your credit utilization and also diversify your debt types.
Refinance your student loans When lenders look at your debt-to-income ratio, they are also looking at your monthly student loan payments.
There are student loan refinance lenders who offer interest rates as low as 2.50% - 3.00%, which is substantially lower than federal student loans and in-school private loan interest rates.
Student loan refinancing works with federal student loans, private student loans or both.