Student loan has often stood in the way of most millennials' dream of owning a home. However, a local bank recently offered a new program, which offers a fixed 1 percent APR in student loan refinancing to attract first-time home buyers into finally making their dream a reality.
Most people, especially millennials, are having a hard time buying their own home because they are still paying for their student loans. Aside from the debt affecting their credit ratings, having to pay for a student loan also gets in the way of millennials saving for the down payment on their dream home.
However, the Gate City Bank in North Dakota realized this major obstacle and developed a program to help millennials achieve their dreams of owning a house, Realtor.com reported. The program is called, "BetterLife Student Loan Program," which offers a fixed 1 percent APR for student loan refinancing as long as the buyer will finance their home through the bank.
The program allows borrowers with two- or four-year degrees to refinance up to $50,000 of their student loan as long as they have made 12 consecutive on-time payments. The program's rate is considerably lower than other student loans, which often go higher than 5 percent.
The publication noted that those who are not living in North Dakota can still improve their chances of buying a house while paying for their student loan by working on their credit scores.
Realty Today also reported on some tips to pay off your student loan in less than two years.
One of the things you need to do is to find ways to earn and save more money. If you can squeeze in some more time for tutoring or babysitting, then that would help add up to your payments for the student loan. It may also help to create a plan so that you know when you are getting sidetracked and ways in which you can get yourself back on track.