For many young adults, starting a family and maybe purchasing a home is an important personal goal for them. Due to the significant increase in student loan debt this debt could be a barrier for them to home purchase affordability. The student loan repayment plans can impact your home purchase.
Depending on the repayment option you have selected, this could impact the amount of mortgage you will qualify for in purchasing a home. In most cases the banks want to see your other debt and how those payments are structured when qualifying for a home mortgage.
When you selected your repayment method you may have selected a repayment plan based on your income for a variety of reasons. It could have been cash flow, budget reasons or loan forgiveness. Since the income dependent repayment methods can vary by month, it may become an issue in your mortgage approval process. You may need to change methods to qualify for the mortgage since the some of the other plans offer a fixed payment amount over the life of the loan. This will reduce the banks risk if you have a significant increase in income which would result in a significant increase in your student loan payment if under one of the income dependent methods.
You need to be careful here. If you qualify for loan forgiveness the extended and graduated methods do not qualify for loan forgiveness. Properly analyzing how your loan repayment and mortgage repayment will work together needs to be a significant part of this financial decision.