How long are student loans typically deferred for? I have an applicant who is pretty good for the most part, but her student loans deferred. And I’m not talking a little bit. I’m talking $450,000! This avalanche of debt is going to crush this person one of these days. Is it legal to ask a prospective tenant when these come due Or out of deferment? --24.152.xxx.xx

Payments were scheduled to start back up in January but Biden kicked it down the road again until May. Are they in the medical field, lawyer? --75.67.xxx.xxx

Why are you concerned? Most tenants have debts of one type or another. Student loan debt is just another debt that gets piled on all of the other debts. If this is an applicant, I would keep looking for another instead of trying to figure when the debt bomb is going to explode or implode. --71.207.xxx.x

Geez....that's crazy. --70.92.xx.xx

Roy, read Ned’s answer. I would imagine $465,000 is going to end up being $2500-$3000 a month in payments. --24.152.xxx.xx

1/4 million is student loans is not a shocker anymore. I hope their degrees aren't in cabbage patch doll collection, social worker making $25K a year or trying to find Waldo... --47.155.xx.xxx

Medical field. 117k annual income with 2 year contract. Depending on the payment, the income should cover it. I wouldn’t want to be in that position though. Better off as a general laborer with no debt than in the medical field with no end to the debt. In my opinion. --24.152.xxx.xx

Just because they are in the medical field does not guarantee you anything. Massive debt is massive debt and I would predict that either a default or re-structuring of the debt will happen when the deferment ends. However, this is not your problem and don't make it your problem by renting to this person. --71.207.xxx.x

Obviously the medical field doesn’t guarantee anything. However, a higher income can carry a higher debt load. 25k income and $400,000 in debt is worlds apart from the same debt to someone making 117k annually. I don’t care what their debt is as long as it falls in line payment wise with everything else. D to I ratio. Just like the bank wants to see. --24.152.xxx.xx

$117K annually is NOT what it use to be. With rising inflation and income taxes, this applicant would have to be earning $250K before I would give them any consideration. --71.207.xxx.x

Possibly, but if they just got deferred and are deferred for another 5 years, I could work with that. --24.152.xxx.xx

Plus, if Br@ n don Ends up forgiving student loan debt as a Hail Mary, that could be a home run for me. --24.152.xxx.xx

It seems like you have already convinced yourself this future deadbeat will be your next tenant. Good luck. I hope things work out. --71.207.xxx.x

Oh no, she’s definitely not approved. Just wondering typical deferment lengths and if it’s kosher to ask the details of them legally. --24.152.xxx.xx

Student loans are not dischargeable in bankruptcy, but “income based repayment” option is available. For fun I ran her figures on student loan hero website and it show her payments on the 450,000 to be $1,236 per month. After 20 years (ten if she works for the government or certain nonprofits) the loan balance is paid off by you and me the taxpayer. Such a deal. --98.13.xx.xxx

I do not see this candidate as a good one --174.206.xxx.xxx

As far as I can tell, tenants never pay their student loans and nothing ever happens to them. The debt just hangs there on their credit report. It doesn't matter much how much the monthly payment is if no one is making the payments. --76.178.xxx.xxx

It’s not so much that the avalanche of debt crushes someone in the medical field if they stay in that field but it is an on going payment for a long time. I think my 45 year old cousin just paid hers off last month. Similar time frame for some chiropractors I know. If they leave the field and income, ghat is a different story. I thought it was typical to have about a 6 month deferment right out of school to allow time to find a job and there are income deferments but I have never heard of a 5 year standard deferment. Currently the federal government has frozen interest and allowed deferment. The talk about wiping out debt I thought was income related and only $10K. --75.67.xxx.xxx

so we should all pay for that? --99.103.xxx.xxx

Who is the taxpayer who’s “paying for it”? Unless Bra n Don forgives some or all, the borrow pays for it. Defaulting aside. My wife is repaying every cent of hers. I repaid every cent of mine. We borrowed before we knew any better, like most kids that age. Products of our parents. Defaulting would only accelerate a downward trajectory in life. --24.152.xxx.xx

No one is racking up 450K for a Bachelor or even a Masters level degree. This is med school debt. But that being said my daughters Bachelors in Education total raw cost would have been 100K had she stayed on campus all 4 years. --66.42.xxx.xx

This is optometry --24.152.xxx.xx

I would consider her, but only if you can teach her that rent ALWAYS gets paid first. The government can't repossess her education, but you can make her life miserable if she fails to abide by that agreement. Bonus: You probably don't have to worry about her leaving you to buy a house. --107.141.xx.xxx

Also, when she starts repaying her loan, find out when her monthly payments are due. Make rent due the week before. --107.141.xx.xxx

I agree with Scott,she isnt buying a house anytime soon. --72.231.xxx.xxx

“Under all four plans, any remaining loan balance is forgiven if your federal student loans aren't fully repaid at the end of the repayment period. For any income-driven repayment plan, periods of economic hardship deferment, periods of repayment under certain other repayment plans, and periods when your required payment is zero will count toward your total repayment period. Whether you will have a balance left to be forgiven at the end of your repayment period depends on a number of factors, such as how quickly your income rises and how large your income is relative to your debt.” --98.13.xx.xxx

I have no crystal ball, but my guess is within 2 years she piles on another $100k - $200k of "lifestyle". --45.20.xxx.xxx

--70.92.xxx.xxx

I would rent to her. It's good for now. When it's not good then end the relationship of LL tenant. --172.58.xxx.xxx

I wouldn't worry about it they are very forgiving with student loan debt. --24.45.xxx.xxx

Don’t worry guys. Hardly anyone actually qualifies for the “forgiveness” after ten years. It’s like less than 1% as the government ensures it’s nearly impossible to complete. My student loans are 190k. Payments are 600 bucks. Just bought a house and I have approx an 95k income. I’m doing fine. She’ll be good and I would assume her income will continue to go up. --68.226.xx.xx

Those that did still had to pay every penny of interest, and on time, for 120 months. I'm not a fan of "forgiveness" programs, but that one in particular had very good parameters, and few who actually qualified. --98.115.xxx.xxx

First of all a deferment is not a forgiveness. Second, forgiveness is usually done after 10 years of on time payment and employment of public service. Teachers in low income school districts, military service, fed or state govs, etc... Third it's only federal loan portion of their debt. Not private loans which make up the majority of ones student debt. These people are not getting any free rides. On the other hand we give rich people free rides all the time at the expense of taxpayers. Less overall tax burden, ability to write off losses and bankruptcy, tax write offs on big boats, planes, large homes, etc... Your manufactured outrage is typical for not having any idea how any of it works. --66.42.xxx.xx

Moral of JAC’s story: teach you kids to use the United States tax laws to their benefit to become wealthy long term via business ownership and RE vs going eyeballs deep into debt at what were once prestigious American universities and are now not much more than leftist indoctrination centers to get useless degrees. --24.152.xxx.xx

NE you are right, those loans will hit hard. She will spend years of her life as a debt slave. How good a tenant she will be depends on her level of self discipline. She could have done a lot to lower that debt by making different choices. --216.23.xxx.xx

Like most liberals, you misuse the word subsidy. Taking less from a person is not a subsidy. Do they not teach how to draw a simple cash flow diagram over as MSNBC anymore? --98.13.xx.xxx

If there is a default on a Sallie Mae loan, your resident will not be getting a tax refund. --24.101.xxx.xxx