For the very first time, the student debt burden has reached levels well above all other forms of consumer debt, topping $1 trillion dollars in 2012. According to Time magazine, student debt has reached historic levels, and 20 percent of U.S. households have outstanding educational loans. This is an alarming situation for up-and-coming home buyers who are afraid they won’t be able to get a mortgage.

According to the Huffington Post, total student debt has nearly tripled over the past eight years. The average student’s college debt is more than $24,000, according to The Huffington Post. And unfortunately, student loans are one of very few forms of debt that cannot be absolved in bankruptcy.


If you’re worried that this could dramatically impact you, you must know that if you have student loans, you can qualify for a mortgage any time, according to That is, if you’ve been making consistent payments on your loans, lenders view student loans as a preferred installment debt. If you make timely payments on your loans, you are essentially building a positive credit history. Loans only affect your ability to qualify for a mortgage if there is a missed payment on your record.

Some tips for those of you who have student loans: make regular payments, and write yourself a payment schedule. Also, avoid credit card debt at all costs, you don’t want to add more that you owe on your record. And most of all, don’t fret! You can still buy that dream home, even if you have massive student debt.