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will buying a house affect student loans?

Discussion in 'Pre-Dental' started by alfonso, Jan 1, 2002.

  1. alfonso

    alfonso Junior Member
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    hello everyone,
    I will probably be going to NYU and instead of paying the outrageous rents I was considering buying a house or condo in Queens or New Jersey. Anyone know if this will affect my ability to qualify for student loans? Thanks
     
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  3. MsPurtell

    MsPurtell Guest

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    Good question. I'd like to buy a small house near UConn (if I end up there). I'm not anticipating it affecting my ability to get loans, but I'll check it out with the financial aid office before I buy.

    Margaret
     
  4. ske5

    ske5 Junior Member
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    I think that you can get federal loans up to the estimated amount of tuition (and not a cent more) almost regardless of your credit. However, if you are planning on having anything to eat, private loans are available. These are regular loans given by banks and they will look at your credit, available resources, anticipated income etc... Buying a house would affect your chance of getting these loans.
     
  5. groundhog

    groundhog 1K Member
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    Federal loans cover tuition, books, misc materials, and reasonable living expenses (per school calculation) minus any expected student contribution.
     
  6. MsPurtell

    MsPurtell Guest

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    Hi Everyone,

    I was looking at FAFSA on the Web and it seems that unsubsidized Stafford loans (which are gov't loans) can be obtained regardless of need. This doesn't make sense to me. It seems to say that you can have $$$ in the bank and opt for a loan anyway. Not that I wouldn't mind doing that, I just can't understand why they'd allow it.

    <a href="http://www.finaid.org/loans/studentloan.phtml" target="_blank">http://www.finaid.org/loans/studentloan.phtml</a>

    Margaret
     
  7. mpp

    mpp SDN Moderator
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    To me, one of the few examples of where the government got it right. It makes no sense to me to punish people that save their money by making them ineligible for services. If you are irresponsible and wasteful they hand you interest free cash. I understand that many people that receive need-based money are very responsible and they obviously should not be denied, but neither should people that have shown responsibility and the ability to earn and save money. It's blatant discrimination and hypocritical on the part of those that support these programs.
     
  8. MsPurtell

    MsPurtell Guest

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    mpp,

    I've often iterated those words to myself!!! I should've been a complete screw-up, then I'd get loads of aid and subsidized loans! Instead, I've worked a dozen years, saved my pennies and now will have to use my own money. Same goes for health insurance. I could be a complete idiot, fritter away money, not give a darn if I lose my job and when I got the big C, I could've gotten Medicaid. So, I wouldn't even be worried about health insurance (my biggest woe right now) now that I'm trying to pick a dental school. You only benefit if you are filthy rich or dirt poor.

    I hope, in fact, that I will still be able to get a loan even though I have some $$$ in the bank and that having a mortgage won't screw things up.
     
  9. groundhog

    groundhog 1K Member
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    Being a serious student and a financial goof off are not likely to be character traits found in the same person unless you are a border line schizo or a calculating scam artist. In either case, be content that you take responsibility in all areas of your life
     
  10. mpp

    mpp SDN Moderator
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  11. gower

    gower 1K Member
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    You must not be a New Yorker. You have no idea of the cost of renting, let alone buying a house or apartment in NYC, or even across the river! The interest you will have to pay back on those loans is far more than the cost of what you will pay back on student loans! Factor in the cost, time-wise, money-wise and jangled nerves-wise, of commuting on public transportation (don't even think of using an automobile, especially in Mahhattan) and you will be penniless, exhausted, and frequently late to classes if you get there at all. It is no fun using the subway system, the busses or driving. Rush hour begins before 5AM and ends about 11PM. There is nothing but congestion on the roads, tunnels and bridges. There are tolls, if you drive, on all the bridges and tunnels between NY and NJ and on some of the bridges and tunnels between Queens, Manhattan and the Bronx.

    The ability to borrow is also predicated on how much debt you already have. One of the biggest killers there is existing credit-card debt.

    I was born and lived in NYC all my life and I am not a youngster.

    Exercise caution: loans are not free money.
     
  12. MsPurtell

    MsPurtell Guest

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    So what are you saying, Gower? Will having a mortgage affect one's ability to get a student loan? If I move to CT, I won't take out a very large mortgage. My payments will actually be lower than if I rented. I think the original question was whether or not having a mortgage will make it less likely that you will be able to borrow additional money in the form of school loans.

    Margaret
     
  13. EMDrMoe

    EMDrMoe Senior Member
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    If you can find a lender that will give you a mortgage based on your existing credit, you can very likely live in a better house than you would rent for the price. The trouble is finding the lender that will work with the budgeted amount for "rent".

    For example, if you spend $840 on rent, you can put that into a mortgage for $130,000. At the end of four years, you would spend $40,320 on rent. If you buy a house for $130k and sell it for $130k four years later,(assuming NO appreciation) you break even (not taking tax breaks into account).

    To make a long story short, you will fill out the FAFSA before you have the mortgage, most likely. If you have a question about a possible lender, send me a private message. Thanks!
     

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