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New mortgage hurt chance of student loans?

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bcombs


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I'll try to avoid giving my life story, but basically, I am 23, work full time, and my wife is a full time student. I plan on quitting my job and financing my wife and I via my G.I. Bill and student loans for the next three years, until she gets her BSN and I go to med school/ grad school/ back to work. Because we are going to pay rent every month anyway, we are considering buying a home in the next few months.

If we take out a $150,000 mortgage, will this hurt our chance of getting Perkins/ Stafford/ private loans? (I should note that I have AMAZING credit). I am just a part-time, night class student now, and due to my income, we've never had to take out loans, so I don't really know how they work. The university I'm attending makes it sound like there's no real approval process for federally subsidized loans, so long as you get good grades. We will probably be financing $15,000 a year for BOTH of us ($7,500 each) for three years. Any thoughts/ advice?
 

TMP-SMX

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Perkins are need based so your credit has no bearing. Credit doesn't matter for stafford loans either. What does matter is your income and how much you have in the bank. If you only need $15,000 a year I wouldn't be worrying much anyway as you will have no problems getting staffords. Perkins might be tough as it not only includes your income it will also include your parental income to be eligible for them.
 
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bcombs

Part of me thinks I'm crazy for trying to do this, but the reasons we're considering it are:
1) Housing market is AWFUL where I live. If we buy now, we can get really, really good deals and low interest.
2) If we stayed in an apartment, we would be borrowing almost as much money for rent anyway.

Does Perkins require information about your parents' income if you are independent? (I have not lived with my parents for 5 years and the last 5 1040EZ's I've filed, I've claimed myself, and my parents haven't claimed me).
 

TMP-SMX

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For medical school you are independent for FAFSA (tax status is irrelevant), however, need-based aid requires parental information to be eligible. That includes Perkins loans.
 

babel

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All bets are off once one is married, no? I am not, and so I understand the pain of including my parents' income though I am older than most of my classmates and supported myself for 3 years before medical school..... I just thought that marriage was the magic ticket out, even for need/school based aid.
 

TMP-SMX

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Age and marriage status doesn't matter. Need-based aid always includes parental information. (Though some school-based aid at certain places has some kind of limit to age).
 
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bcombs

Hm... my wife and I were already approved for Federal Stafford loans this semester, while we are both undergrads. Mainly, I'm curious if having the mortgage will hurt chance of federally-subsidized loans, or is it purely income-based (as opposed to credit-based)?

Just to make sure I understand, as a married 24-year old who has filed taxes independently for six years and is a resident of a different state, they will require my parents' tax info? That is just... mind-numbingly ignorant if this is true.
 

TMP-SMX

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As an undergrad, as soon as you get married (or will be 24 at the end of the year you file the FAFSA) you are independent for the FAFSA and parental information is not required or counted. Everyone gets the full amount of eligible Stafford loans but depending on whether your EFC-CoA is above a certain amount you may get all or none of the subsidized Stafford loans.

A mortgage won't change your eligibility for Stafford loans. Sub Staffords are need-based, unsub Staffords go out to everyone, Perkins are need-based, Pell grants are need-based, and GradPLUS/Parent PLUS are minimally credit based (require no major credit problems or recent problems). However, private loans may be more difficult to get with the lowest rates with the dip your credit score may see post-mortgage.

Just remember that dependency on the FAFSA has nothing to do with dependency on taxes. For medical school, parental information is always required if one wants need-based loans beyond unsub/sub Staffords. For undergrad, parental information is required if dependent and not required if independent.
 
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