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Can Stafford loans be used to pay a mortgage?

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DoctorWannaBe

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I was thinking about buying a condo for medical school. Is it possible to use my school loans (Stafford loans) to pay my mortgage? If I'm correct, the unsubsidized Stafford loan rate is about 2.5% right now, which is a lot lower than a home mortgage rate of 6-7%. I talked to a lender who said I can qualify for a mortgage, but I'm wondering if I can pay off the mortgage loan early, or pay off a significant portion of it, by taking out the maximum amount of student loans.
 

mpp

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You may certainly use Stafford loan money to make your mortgage payment, you are not permitted to take out extra loans for non-education related expenses. But, in reality, there is little to stop you from doing this.

Just remember that the terms of a Stafford loan are different from a mortgage. The interest rate is variable and typically the repayment terms are 10 years (although this can be changed).
 
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