manucci Posted December 13, 2004 Report Share Posted December 13, 2004 Hello:I have 2 student loans; one for $36,000 (Consolidated) with DOED paying $200 a month for the next 1,000 years, and the other one for $3,500 with my old university paying $46 a month for the next 10 years or so. I got my BA and MBA because of them. I have been paying them on time for the past 6 years and they have been reporting them accurately and everything is fine, EXCEPT;THEY SHOW TOO MUCH DEBT IN MY CREDIT REPORTS.Their interest rates are around 4.5% and they are fully tax deductible which makes it crazy to pay them off, besides not being able to. But when I apply for a car loan or a home loan, this is what takes the center stage. My debt to income ratio is too high because of these 2 loans.What can I do about it? I even had to explain to loan officers that these student loans were not just expenditure but investment in me, and I have a valuable MBA which brings me $75,000 a year, but I think I sang on deaf ears. It seems that university degrees are not valuable commodity.Is there anyway to delete them, or do something?I appreciate it very much; you guys and gals are great.Michael Link to comment Share on other sites More sharing options...
LynnInMN Posted December 13, 2004 Report Share Posted December 13, 2004 Hello:Their interest rates are around 4.5% and they are fully tax deductible which makes it crazy to pay them off, besides not being able to. Is there anyway to delete them, or do something?MichaelNope, they cannot be deleted. Link to comment Share on other sites More sharing options...
wunderwoman Posted December 13, 2004 Report Share Posted December 13, 2004 You interest rates are VERY HIGH for a student loan. Are you sure they are 4.5%? Your situation is almost EXACTLY like mine, debt amounts and everything. I don't know what loan officers you've spoken to, but it's odd to me that they are saying your debt-to-income ratio is too high, seeing you make $75,000 and these are student loans you're paying off, which usually fall into a 10 year plan.If I were you I'd check with another loan company. I'd also pay down the smaller loan immediately (within 3 months) and then try to get an income contingency plan or consolidation on the loans. You are paying a really high interest on a loan that's over 6 years old. Link to comment Share on other sites More sharing options...
LynnInMN Posted December 13, 2004 Report Share Posted December 13, 2004 Actually his loan is already consolidated so his interest is based on his weighted average, which is how they calculate interest rates. Nothing he can do there. Link to comment Share on other sites More sharing options...
manucci Posted December 14, 2004 Author Report Share Posted December 14, 2004 Hello:Thank you; I will try to pay off the smaller loan.Sincerely,Michael Link to comment Share on other sites More sharing options...
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