Ignite FB Tracking PixelPaying Off School Debt to Afford a Mortgage - John Torres
Paying Off School Debt to Afford a Mortgage

by John Torres 05/05/2019

The cost to attend university continues to rise, putting pressure on students to afford an education. While some universities assist their students, many raise their prices to contend with operating costs. As a result, students leave school with mounds of debt that impede their quality of life. Paying off student loans starts by laying the appropriate groundwork, which gives you the best chance at success. 

Where to Start

Begin by identifying the type of student loans you have. Most often, you have either private or government student loans. The difference between them dictates the various options available to eliminate your debt. Now that you've identified your student loan type start with the government student loan. 

Government Loans

Government loans offer a variety of payment options based on factors such as your income and ability to pay. To more effectively make your student loan payments, request the payment plan that fits your financial situation. When you do receive extra money—like that birthday gift from Great-Aunt Daisy—apply it to your principal balance. You'll speed up the loan elimination process. By using the right payment plan, you balance your debt elimination with financial well being.

Private Loans

The payment plans for private student loans are difficult to adjust. One method to consider is refinancing to a lower interest rate. By refinancing your loan, you may lower your monthly payments. If you continue making more substantial payments on your refinanced note, you'll eliminate the principal balance at a faster rate. 

If you find yourself looking to refinance, shop around. Several companies specialize in student loan refinancing. By lowering your interest rate, you save money and can use that extra money toward principal payments, ultimately eliminating your student loans faster.

Finally, once you set a repayment plan, increase your principal payments through a second job or side-gig. Lyft, eBay, Instacart, and other flexible part-time options make increasing your outside income possible. Eliminating student loan debt is difficult, but certainly possible. With minor tweaks and adjustments, you will find the right path for you. 

Once you clear your student debt, you will have extra income for items such as saving for a down payment on a home. Purchasing a home is arguably the most significant asset for most people. By eliminating student debt, you can focus on home buying. To see if you qualify for a mortgage despite your school debt, reach out to a mortgage broker or loan officer.

About the Author

Author
John Torres

John Torres began his career in real estate with the CENTURY 21 Les Ryan’s Healdsburg Realtors office in 1986.  John rapidly became a Multi-Million Dollar producer in both listings and sales of Sonoma County properties.  He is a member of the North County Council of Realtors, National Association of Realtors and California Association of Realtors.  John has served on the Land Use Advisory Panel for Sonoma County.  John served as the Northern California Century 21 representative to the Easter Seals Society for 13 years.

The North County Council of Realtors® selected Mr. Torres “Realtor of the Year” in both 1988 and 1992.  In 1993, John became a partner in the CENTURY 21 Les Ryan’s Healdsburg Realtors office and managed the office from 2001 – 2011. The office became a part of CENTURY 21 NorthBay Alliance in March 2011.  CENTURY 21 has been a member of the Healdsburg Area Chamber of Commerce since 1977 and of the Geyserville Chamber of Commerce since 2004.

As a Centurion Producer since 1998, and a Double Centurion in 2004, John has demonstrated his ability to consistently provide quality service to his clients who are both sellers and buyers of real estate.  In recognition of his achievements, John was inducted into the Century 21 Centurion Honor Society at the International Convention in 2007 and again in 2017.  Many of John’s clients return to him over the years and he has a large referral clientele.

John actively supports his community in many ways.  He has served on the Board of Directors of the Healdsburg Boys & Girls Club, Board of Directors of the Healdsburg High School Boosters Club, and the Healdsburg Pop Warner Football organization.  He chaired the Easter Seal Golf Tournament in Healdsburg for 12 years, and originated and chaired for 6 years a fundraising golf tournament for the Healdsburg High School Boosters.  John also organized and chaired the North County Council of Realtors Golf Tournament benefiting the Healdsburg Food Pantry for six years.  He coached Pop Warner Football teams for 10 years, was the Healdsburg High School Freshman Football Coach for 5 years and was the Varsity Golf Coach at Healdsburg High School for 10 years.  John now serves his community as a member of Rotary Club of Healdsburg and is active in his church and the local Italian Catholic Federation.

John Torres is a professional with 30+ years of experience who is dedicated to providing his clients with the best service possible.