 TITLE: How Does Student Loan Debt Affect Buying a Home? CONTENT: Reducing Your Student Loan Debt\n-------------------------------\nIf you want to buy a home in the near future and your DTI is too high to qualify for a mortgage, there are several steps you can take to reduce your student loan debt.\n*   **Pay more toward your student loan every month**. Cut back on discretionary spending, such as eating out or buying new clothes, and put the extra money toward your student loan payments. Paying a bit more on your student loan each month will gradually improve your DTI.\n*   **Consider refinancing or consolidating your loans**. If you have federal student loans, the U.S. Department of Education offers a loan consolidation program that combines all of your federal student loans into one loan with one monthly payment. Although it won't lower your interest rate, federal student loan consolidation can make it easier to keep track of your debt and make your payments on time. It can also give you access to more flexible repayment plans. If you have private student loans, investigate loan consolidation and refinancing options offered by banks, credit unions and online lenders. Be aware that if your credit scores and DTI are less than stellar, it may be difficult to refinance student loans at a lower interest rate than you currently have. Learn more about refinancing and consolidating student loans.\n*   **Make more income**. See if you can get a raise at your current job, take on a part-time job or start a side hustle to earn extra money. In addition to improving your DTI, increasing your gross monthly income can help you save more money toward a down payment or pay more toward your student loan each month.\n*   **Look for a new job that offers assistance with student loan debt**. Student loan debt repayment assistance has become a popular employee benefit, and is now offered by hundreds of companies nationwide. If you're open to a job change, finding a company that will help with your student loans can make a big difference to your debt load. (Keep in mind that mortgage lenders generally want to see a job history of at least two years with the same employer, so don't use this tactic unless you're willing to wait two years to apply for a mortgage.)\nAll of these steps take time, but be patient. Eventually, small changes will have big results, leaving you better positioned to manage the responsibility of a mortgage. END