S2E42 – How Will Student Loan Repayments Affect The Housing Market?

44 Million Borrowers in the US will have to start their student loan repayment as of October 1 2023. Federal student loan repayments were paused in March 2020 and extended 8 different times essentially putting between $200-300 of income back into their pockets. How will this change in student debt affect the housing market? Will student loan repayments crash the housing market? In this episode we discuss how student loan repayments will affect the housing market by helping you become The Educated HomeBuyer.

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Connect with me 👇 Jeb Smith (huntington beach Realtor/orange county real estate) DRE 01407449 Coldwell Banker Realty ➡I N S T A G R A M ➳ https://www.instagram.com/jebsmith ➡Y O U T U B E ➳https://www.youtube.com/c/JebSmith

Connect with me 👇 Josh Lewis (Huntington Beach Certified Mortgage Expert) DRE 01209148 Buywise Mortgage M:714-916-5727 E: josh@buywisemortgage.com ➡I N S T A G R A M ➳ https://www.instagram.com/joshlewiscmc ➡Y O U T U B E ➳https://www.youtube.com/c/buywiseborrowsmart

📩 – info@theeducatedhomebuyer.com

For Show Notes, See Below 👇

[00:00:00] This is The Educated Homebuyer. Everything you need to know to Buy Right, Borrow Smart and Build Wealth through real estate ownership. 

[00:00:15] Jeb Smith, Huntington Beach Realtor: Federal student loan payments were paused in March of 2020 due to the pandemic and will start back as of October 1st. In fact, by the time you’re listening or watching this, people will have to start making those student loan payments. 

And if you’re listening to this going, Jeb, I don’t have student loan payments, this episode is not for me, bear with us because today’s episode is going to be talking about student loans, student loan repayments, and how that’s going to affect the economy, how it’s going to affect interest rates, how it’s going to affect housing and how it might affect you as someone trying to become The Educated Homebuyer.

So Josh, student loan repayments, this is something you deal with quite frankly, more often than I do. I don’t talk about student loans with clients. Don’t come across student loans. But in your industry, in your line of work, student loans are a big part of, qualifying people, getting them the ability to be able to purchase a home. So let’s talk about that a little bit. And then we can talk about how it affects everything else. 

[00:01:11] Josh Lewis, Certified Mortgage Consultant: I deal with a lot of borrowers with student loans, largely because people of prime home buying age, a lot of them have student loans. But specifically I see a lot of them because we started blogging about this way back in 2016. In 2016, it had been about seven or eight years since the income based repayment plans had been created by the Obama administration.

So again, you guys hate when we get political, we’re not getting political. This is just who was in office. Someone in office was going to make a similar decision because our politicians and their infinite wisdom, rather than fixing problems, they bandaid problems. So at that time, I believe that was about the time when total student loan debt had gone over 1 trillion for the first time. 

So they sat back and said, Hey, we’ve got way too many student loans. What can we do to fix this? We will give them a much lower monthly payment than what they would otherwise have. 

It took about six or seven years for the other arms of the government that make loans directly FHA, VA, USDA, and indirectly or quasi government in terms of Fannie Mae and Freddie Mac to start looking at these things going, this is weird. I have a borrower here with a $350,000 student loan balance, and it says their payment is $17 a month. That can’t possibly be true. 

So underwriters start asking about it. And between 2015 and 2019 or so 2018, I believe when we saw the last major refinements to how student loans are handled, we’ve come up with ways that now all forms of the government related to student loan borrowing and mortgage borrowing will somewhat ignore student loans to a degree in the form of income based repayments in terms of allowing much lower monthly payments.

But now this is interesting. We talk a lot job on the show about terrible government decisions during the pandemic. We all realized that everyone globally, not just our government everywhere. No one knew what the heck was going on. 

[00:03:00] We all thought in the first couple of weeks are we all going to die? Are 5 percent of us going to die? Are we all going to know people that die because of this? And it didn’t turn out to be nearly as bad as was thought but there were things done in the short run that made sense. But now we’re dealing with them three and a half years later. This is insanity that we have a pandemic response of student loans being on forbearance.

Totally political, totally absurd. And again, is another way of not dealing with the issue in that we have a system that we push education on young people. And then we say, Hey, as much as you want to finance it, here you go. Oh, now you have to pay for it. And we don’t know whether that degree even provides you with the ability to repay for it.

So in the context of today, we are about ready to see the repercussions of that. I think they’re going to be significant. I think they’re going to be negative. And I also think despite all of that vastly overblown. The media, remember if it bleeds, it leads. So they love to say this is the end of the world, but we’re going to go through some statistics, Jeb here that tell you this is going to lead to a significant change.

And part of that, again, just the point that it’s silly that three and a half years later, we have a COVID response forbearance still in place. But think of it this way. If you’re undergoing a global emergency. And there’s a response that says this big debt that you have, you don’t have to pay for six months, 12 months, in your brain you still remember what that is like to pay it and you know that at some point that payment is coming back. 

But if your government six times extends out that forbearance. 

Eight times. 

Eight times extends it out to three and a half years. You have now forgotten what it’s like to make that payment. You’ve forgotten what your budget looks like with that payment in there. And you may, with all of the other shenanigans going on, have believed that some or all of that debt was going to go away. 

So again, our government regardless, we’ve had Republicans and Democrats in office over the last 15, 20 years when this has really exploded have screwed this up. And here we are.

So today we’re going to talk about the repercussions for those with student loans, the repercussions of the student loan repayment for the economy, how that’s going to impact interest rates and housing going forward. 

[00:05:14] Jeb Smith, Huntington Beach Realtor: Yeah. I mean, This does affect 44 million borrowers. That’s essentially how many people were affected by the student loan pause. And those payments on average range, somewhere between $200 and $299 per student per person, according to what the most recent federal reserve data. 

So the data’s coming directly from the federal reserve saying that the average student is paying somewhere between $200 and $300 a month. If I’m guessing, clearly a guess here, I don’t know this to be a hundred percent fact, but anybody that had that pause over the last three and a half years likely wasn’t taking that $300 and stuffing it into an account so that they could later use it to repay their student loans.

They were probably using it in other areas of the economy. Traveling, they were buying, toys, [00:06:00] iPhones, whatever it is, that money was still being used just not for the same purpose it was prior to the pandemic. And so now what we have is the government saying, you know what, we tried, we can’t completely alleviate your student loan pain. You’ve got to start repaying again. 

And here we are now that $200-300 in theory comes out of the economy, right? That growth that, that it was going towards, whether it be leisure, hospitality, whatever comes out. And now it goes to student loan debt. And so that’s what I think a lot of people are looking at.

They’re looking at Josh, the idea that money, that these students, for one don’t have the money anymore. There’s no longer $200-300 or whatever your number is they allotted for it because now it’s allotted in a different place. 

That’s part of it. The other idea is that because now that the student loans have these numbers that they have to pay, that they’re no longer going to be able to qualify for homes. That now that affects their ability to purchase a home, because now you have to factor this in.

It was always factored in, but we’ll talk about that. But let’s talk a little bit about the amount of student loan debt. What’s the average, what’s the median where does the majority of the population sit when we talk about student loan debt? 

[00:07:18] Josh Lewis, Certified Mortgage Consultant: You and I both heard one of our favorite economists Logan Mohatashami, the head economist at Hosing Wire was on a podcast and was discussing this.

And he said, Hey, I think the student loan stuff is overblown because you see these numbers, you hear the monstrous amount of debt out there, but what was, how did he couch it? It was 50 percent of borrowers owe $17,000 or less was what he said. 

[00:07:37] Jeb Smith, Huntington Beach Realtor: He basically said the majority of student loan holders out there, their debt represents less than $17,000. So the majority of people who have student loan debt have less than $17,000, but that’s different than the average and the median, because those numbers are pulled up by those that have the monstrous debt that we’ve been talking. 

[00:07:55] Josh Lewis, Certified Mortgage Consultant: Yeah we saw the chart he was looking at and we couldn’t quite get to the same figure, but here’s the point that he was making. The average student loan debt as of 2023, for borrowers with student loan debt is about $38,000, a little bit higher than that. The median is about $28,000. 

When we talk about home prices, we always say be very cautious of the median because the median moves as the mix of houses changes. When the economy is tighter, more cheap homes are going to sell.

So that doesn’t mean that the more expensive home became less pricey to buy. It just means more of them moved at the lower end of the price points. That doesn’t really come into play here. So it’s important to look at both. The average figure, that $38,000, as Jeb pointed out, is pulled up by those with a lot of debt.

And in general, those are either people who went to a private school or achieved an advanced degree. I think that Jeb, we saw the new terminology, selective universities, AKA private schools that charge a lot of money and graduate degrees. They also lead to higher earnings.

So Is it an issue that those people have a lot of debt? Yes, it is, but not quite as big as what you would [00:09:00] think. But $27,000. What I can tell you, there’s really only two types of borrowers that I see coming to me. I don’t see the people with $60, 70, 80,000, I only see at or below that median figure. And for those people, it’s really not an issue because either they have an income based repayment. That payment is like $100, $150, $200. Or even a standard repayment is not that huge on that amount of a balance. 

What I will say is I do get a lot of lawyers that come through and they have three and $400,000 of student loan debt. The thing to remember is their income based repayment plan typically has them paying somewhere around $1000, $1200, $1,500 a month.

And if you are not a lawyer and you are sitting at home going that’s going to keep them from buying a home. If you’re a lawyer making $185,000 a year, and you’re married to another lawyer, like many of my clients are, and they make $200,000 a year, your $400,000 household income can absorb a couple of $1500 payments fairly easily.

And what I will also say, many of those public servants with advanced degrees, they will go to work for the government. So here’s the good way or the best way or the perfect way that the government can provide a solution. You, instead of going into private practice and making as much money as possible, you go to work in public service and for the government in one way or another.

And if you do that for 10 years while making your on time student loan payments, which are much lower than they otherwise would be, at the end of that period, the government will forgive those loans. So Jeb, we just talked about it. One of my attorneys with $350,000 of student loan debt, you get that washed away. 

And I’ve seen three or four of them within the last 12 months, get their debt, after their 10 years, removed. And you go, that’s absurd. That is a ton of money. How can the government do that? When you look at it over the 10 years that they gave to public service, that’s about $35,000 a year.

To me, that is a fairly good trade off. We get young, talented people giving their time, effort, and energy to public service in exchange for washing away their student loans. And then they’re 35 or 40 years old and they get to go have 20 to 30 years of earning out in the private sector, maximizing their income without student loans hanging over their head.

So those are the two types of people that I see, Jeb. Ones with a small amount of student loan debt, and it is not an issue for them to handle that payment. And they’ll get them paid off in seven, eight, 10 years. The other side is most of the people with monstrous student loan debt have a plan. That plan is typically IBR payment, public service loan forgiveness happening somewhere about 10 years down the line.

So when we look at that, one of the things here, Jeb, in terms of data that we talked earlier, federal reserve data says that the average payment is $200 to $299 a month. Looked here according to the Education Data Initiative, which has, there’s a website with lots of really good data if you’re interested in going down that rabbit hole, they show the average student loan payment around $502 a month.

So any way you look at it, whether it’s $200, $300, $500, that is a significant [00:12:00] number. We have a lot of people, so 40 million that are going to be having a payment of $200 to $500 a month on average, some significantly higher, that is going to come into play. 

Now, one of the things when the courts struck down Biden’s plan for student loan forgiveness, the immediate response is they’re trying to pass a new improved version of IBR.

Income based repayment typically says you provide all of your income and debt documentation and your payment for your student loans is set at 10 percent of your monthly disposable income. They’re talking about taking that down to 5%. So all of these numbers may be overstated depending on how the government reacts to it.

So that leads us Jeb to the giant question. How does this impact the economy? And I think in simple terms, before you answer that there’s no positive, there’s no positive way to spin this. Can an additional 10 billion a month of spending coming out of consumer pockets that can’t go to discretionary things right now, can that be good?

There’s no way it can be good. So we’re either looking at neutral to minimal or a significant negative impact. So what are your thoughts there?

[00:13:04] Jeb Smith, Huntington Beach Realtor: I do want to answer that, but I do want to provide some statistics here or some real numbers, because we often talk about numbers in this and distribution of student loan borrower payments by balance.

So you have about eight and a half million of the 44 million that have less than $5000. Now for some people five thousand dollars might be a lot. I would say for the majority Of people out there $5000 in student loan debts is not a big thing, especially when you could do IBR payments and different things to really lower that amount.

Then you have another almost seven and a half million sitting somewhere between $5000 and $10,000 of debt. So combined about 16 percent right there that have less than $10,000, which is a third of the 44 million. 

So the majority of people out there don’t have like monstrous student loan debt. Now at the flip side, you’ve got nearly 1. 2 million people that have more than $150,000. So it’s a balance, right?

I think, again, like you said, if it bleeds, it leads. It’s really easy to spin this in a way that everybody that has student loans is going to be affected in a negative way and how much that’s going to affect the economy. I don’t necessarily agree with that. It will provide some slowing in the economy, which is getting back to your question.

Yes, I do think it takes money out of discretionary things, which is pushing up inflation at the moment in some categories. And once that money comes out that in and of itself allows inflation in some of these areas to maybe come down a little bit, to moderate. On top of what the Fed’s already doing with raising rates and how that affects the economy.

So I think you’re going to see some inflation come down in some of these ancillary areas where people can spend money and enjoy activities and do different things as student loan payments start to come back into fruition. To answer your question, it slows the economy. Does it crash the economy? I don’t think so. 

I [00:15:00] don’t think the student loan repayment, based on the numbers that we’re talking about, is enough for someone not to pull that money from somewhere else that it’s been used or budgeted or whatever to go back to the student loans. Maybe I’m wrong, but I think that is really what, what we’re talking about.

And on the loan side, Josh, when people are qualifying for loans you’re using their student loans. Even though they weren’t paying them, you had to factor in a payment. So whether or not the borrower was budgeting that money or not into how much they were comfortable with. Most of them probably weren’t if we’re being honest, but maybe some were. We don’t know that answer, but as far as the qualifying purposes not really a lot’s going to change that. 

[00:15:46] Josh Lewis, Certified Mortgage Consultant: Underwriters never ignored your student loans, despite the fact that you didn’t have to make the payment. We either had to document what the income based repayment was or document what the actual amortizing payment was on those student loans. You weren’t required to make that payment, but your debt to income ratio was treated as though you were.

So that leads us to that question, how does this impact the housing market? Is there going to be a bunch of forced sales that now these people that bought during the pandemic, now they have to sell because they have these student loans that they didn’t have to pay before. 

So that is correct. There’s an additional bill they have to pay every month that will stress their household finances, but it was accounted for before they were ever approved for that loan. And where I like to compare this to Jeb I can already tell you that I will find… We’ll come back, we’ll mention it here on the show.

I will find in the next Six to eight weeks, someone will write an article about a family, a person they found somewhere in the United States that had to sell their home that they bought during the pandemic because of the resumption of student loans. How do I know this?

Because I already saw the article that someone who’s employer in Seattle, they moved to Boise. They had to sell their house in Boise and move back to Seattle because their employer said they were going to lose their job. Now those are going to happen. There’s going to be

it’s real life. 

It’s real life, but I’m going to say that 95 percent of people who moved because they were able to work remotely and bought a house were quite confident that they were never going to get pulled back to the mothership.

And I can tell you that 95 percent of the people that bought a home during the pause to their payments on their student loans, know that at some point they were going to have to resume those student loan payments. 

So someone out there was impulsive, didn’t think it through, didn’t know what it looks like and will get stung by this. And you will see that in the media, but this will not happen on a major level. 

So will we have distressed forced sales that lead to a drop in home prices that bring home prices down? There’s not a recipe for a volume here, because again, let’s say you bought in 2020, 2021, or the first part of 2022, you are up anywhere from 10 to 35, 40 [00:18:00] percent in value on that home, and you have a very low interest rate. 

So we’ve talked about this before people will hold on for dear life. They will not want to give that up. They will default on their student loans and stay on time on their mortgage before they will go to sale. And if they do go to sale they have equity that they could actually be an equity sale and not some type of foreclosure, short sale. 

Anything that we’ve talked about previously leads to a cascading lowering of home values. 

[00:18:27] Jeb Smith, Huntington Beach Realtor: No I agree. With that said. I do think a slowing economy, which is one I believe that we’re headed into because of raising rates because of a less productive economy for other reasons, just a slow down in general is going to lead to less discretionary spending, right? Kind of goes hand in hand.

But with that, you’ve got, gas is expensive, groceries, right? Even though inflation is moderating, that doesn’t mean the prices of these things that went up come down, right? We talk about this all the time. This is something that gets into arguments here on YouTube is the idea that because prices stay high, that means inflation is high.

No, that does not mean the inflation is high. Inflation is the rate of change. Whereas the price is the price. So once a price goes up, rarely does it ever come down unless you have some other factors playing into it. So with that said, student loans coming back into repayment, the cost of other things out there being more expensive in general, right?

Going out to dinner now, it’s more expensive. I have a family of five. Rarely can I get out of anywhere without spending a hundred bucks. All of those things lead to a bigger effect on the economy. And now if we start factoring in some of that stuff, can you see a shift in pricing? Can you see a shift in other things?

I believe that’s feasible. But the student loan thing by itself is not the problem. It’s the full circle. It is the student loan repayments. It’s the economy slowing down. It’s rising rates affecting your credit card payments, Affecting your student loan payments, affecting your car loans if you’ve got a car loan recently. It’s all of those short term interest rate things are now more expensive. 

And so all of that combined could be the slowdown or the opportunity to see something lower. But Josh, as I say, it goes back to supply and demand. Until you see more supply on the market than you see willing buyers willing to buy that property. You don’t have a recipe for any major moves in either direction, really. I’m not saying crashing, but I’m also saying you’re not going to see it go up, six, 7 percent either. 

[00:20:44] Josh Lewis, Certified Mortgage Consultant: Absolutely. Big picture. All of the things that we’re talking about here and us talking through this, just for you guys listening at home, you’re like, Hey, these guys are explaining stuff to us.

A lot of times us doing the research and then talking through it helps us get to a better picture because no one has a crystal ball. We are doing the [00:21:00] research. Relying on experience, relying on our conversation with other professionals. Were saying, how is this likely to impact? 

And what I’m hearing here, this is another brick in the wall that tells us that we’re going to have a slower economy and we are going to have lower interest rates sooner rather than later. Now, lower interest rates. That’s a pretty low bar. The 10 year is closing in on four, six today, mortgages, seven and a half to eight percent, depending on how well qualified you are. 

So 2 percent lower doesn’t take us back to some magical world where we have these super low stimulative rates. But the biggest problem or the biggest issue facing the housing market, and most all of America, is affordability of everything, affordability of filling my gas, affordability of buying a new car, affordability of my student loans. 

But for housing, We have incredibly low volume right now because of affordability. We have plenty of willing demand people that want to buy homes. We have limited able demand of people who can afford to do it and qualify today, whether that means coming up with a down payment, qualifying for the monthly payment. We had the Fed last week, last Wednesday, come out and say, Hey we’re increasing what we expect GDP to be next year. We expect the economy to be stronger. We expect rates to be higher for longer.

But this is silly. I have clients who are CPAs. The reason why I even mentioned that I don’t think a CPA has magical special insight because they know how to do accounting, but they have a lot of clients across many industries, many who are business owners. I talked to two of them this week and they’re like, no.

Jeb, we have a joint client who works for a giant commercial contractor doing concrete. Talked to him. So basically all major projects are on hold unless they are too far into it to be stopped. The reason being is those are financed with debt financing. They take out a loan and no one wants to pay what it costs for money right now for those projects to move forward.

So it is a pipe dream to think that the economy is just going to keep humming along forever. The fed was horrifically wrong when they said inflation is not a problem. We don’t have to raise rates and we can keep stimulating the economy by buying treasuries, by buying mortgage bonds and keeping rates really low all the way into the beginning of last year, the beginning of 2022.

They were terribly wrong then they’re terribly wrong now. So they stimulated far too long and now they’re putting the brakes on far too long. And next year, I’m not predicting some horrific, horrible recession, but we are going to have a big slowdown, much bigger than it needs to be because the Fed keeps looking at lagging indicators instead of looking forward.

And Jeb, I’m not sitting here saying that you or I have any magical special insights into this. The data is out there. The Fed knows this. But if they come out and say anything along the lines of we’re going to be easing. We see rates coming down. We see struggles. We see headwinds for the economy next year.

The market will front run that and rates will improve ahead of that. They want rates to stay high a little bit longer. Sometime the first half of next year, we will see major cracks in the economy. And this piece, the student loans is just one more piece of that. [00:24:00] 

So I don’t think if you’re a potential buyer that this really changes your big picture view of it. Probably leads rates to come down. That adds a little bit of demand into the market, maybe even a little bit of supply as some sellers who are not willing to sell at current rates come in.

But for people with student loans, they were either high earners that were going to be able to buy despite their student loans or they’re low earners and it’s going to be a problem. And I don’t think it’s keeping anyone from crossing that threshold into becoming a homeowner. 

[00:24:29] Jeb Smith, Huntington Beach Realtor: Josh, I want to give a little personal reference to this. So I don’t have student loans, paid student loans off a long time ago. But I am in a position of buying a new house, right? I currently have an interest rate at 3%. My mortgage payment is going to go up quite a bit from where it is currently. 

What I’m doing is looking at ways that I’m spending money currently, how can I allocate those same dollars that have been earned instead of spending them here that I now need to spend them there in order to keep what I need to pay every single month the same without having to spend more money. 

I look at student loans like that. That the student loan repayment, they’re going to take the same dollars that they’re using now and instead of spending them here, they’re going to have to spend them there. And that keeps things moving along.

Now, with that said, you mentioned something about rates coming down. This is something that personally I’ve had the conversation in my head about, Hey, the idea of buying now, taking a little bit higher rate because I know that rates are going to come down in the future. I do believe that to be true.

Here’s what I would say though, is if you’re in a job like myself, that is commission based, you’ve got to be a little bit more careful with that mindset in the sense that if the economy does slow down, take housing, for example, and there’s less transactions out there happening in the market. In theory, my income is going to be affected which means my tax returns are going to be affected by doing that.

Which means at the end of the day, do I make enough income on paper to actually be able to refinance that loan in the future as rates come down? And I think it’s really important to bring that into light because nobody’s going to talk about that. Everybody’s going to talk about, hey, rates are going to be lower, just refinance.

Great. It’s great in theory and for the majority of people, it will probably work out. But those that do have fluctuations in income, it needs to be a consideration. It needs to be something now that you are factoring in. Hey, right now is the best time for me to buy a house. I know rates are high.

I’m going to be able to do this, but what if I can’t refinance next year because my tax returns lower? What then? Are you still comfortable with the payment? Because I think that’s what we need to be thinking about. So Josh, I know went off on a tangent there, but these are important things that factor into everything that we talk about here.

Becoming The Educated Homebuyer. This is the education you need, quite frankly, as a homebuyer to make the right decisions. If you’re going through that process. 

[00:26:56] Josh Lewis, Certified Mortgage Consultant: The simple answer for the media is, Hey, this is a terrible thing. [00:27:00] We’ve got 10 billion a month of consumer spending coming out of the economy and absent context that is not a good thing. There’s no positive spin on it, but there are outcomes that will be positive for people in the market. 

There are impacts in how the government will plan and react to this to prevent it from being a problem, which will essentially be kicking the can further down the road. But likely to see income based repayment plans with lower monthly payments. Likely to see a brake on the economy, which will be what the Fed wants to see, which will lead to some easing, which will lead to lower interest rates. 

As you said, the most important thing is educate yourself. Know all of the range of potential outcomes. Determine for yourself what the most likely outcome is. Hope for the best outcome, but plan for the most likely or even the worst case outcome so you don’t put yourself in a bad situation.

Where we are at right now in terms of the economy, I don’t think this is somewhere where anyone should be a gambler and say, Hey, I’ve examined the probabilities. I think there’s a 10 percent chance of an awesome outcome. I’m going for that. 

Make sure you have a 90 percent chance, a 95 percent chance of a positive outcome. Stack the deck in your favor and if there’s a potential for a negative outcome, probably best to avoid it. This is not a risk on environment by any stretch of the imagination. 

[00:28:16] Jeb Smith, Huntington Beach Realtor: And with that, earlier in this episode, we talked about the idea of student loans affecting the economy. At the end of the day is it’s how it affects you. It’s not how it affects everyone else. Worry about yourself first. And whether, it affects your budget. 

We often talk about buying for the right reasons, making sure you have money in the bank, making sure you’re comfortable with the payment and part of that payment is factoring in those student loans, those different things just to make sure you’re good and make sure you have a longer term time horizon.

So with that said, it always goes back to our saying here on the show, which is Buy Right, Borrow Smart and Build Wealth. So Josh if somebody has questions on student loans, they want to figure out if they can get pre approved, if they can get qualified, how that affects them, what’s the best way for them to get in touch.

[00:29:03] Josh Lewis, Certified Mortgage Consultant: So we have the link in the description there. You can reach out to us at info@theeducatedhomebuyer.com and we’ll be happy to point you in the right direction. Some of that may just be, we have a company that we work with that specializes in advising people on how to optimize their student loans for minimum monthly payments and greatest likelihood of most rapid forgiveness. Whether it’s the longterm forgiveness or the public servant loan forgiveness.

We always talk about on the show, it is never too early to talk to a lender. You may not be planning on buying a home for three years, but you have $42,000 of student loans. You want to come up with a plan. Do not feel like it is a sales call that someone’s going to sell you a mortgage, sell you on the idea of buying a house.

They’re going to advise you on how to put yourself in the best position that today, tomorrow, next week, next year, you can successfully become a homeowner when it is right for you. 

[00:29:49] Jeb Smith, Huntington Beach Realtor: All right, guys. So hopefully you found some value in that. If you did hit the thumbs up, share it with somebody, who might have student loans looking to buy a home.

And lastly, if you’re watching on YouTube, hit that subscribe button, [00:30:00] and stay updated on everything we talk about here on The Educated Homebuyer. Until next time, adios 

[00:30:05] Josh Lewis, Certified Mortgage Consultant: amigos!

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