Are school/college loans considered good debt or bad debt?

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Any debt isn’t great. Is school loan debt that is paid every month counted against you on your credit report, when you apply for a car loan or mortgage? Are school loans the except and considered good debt or in the same category as bad debt with credit cards?!

My husbands credit score is over 700. Can he get a mortgage loan without using my information to achieve the loan. I currently am significantly behind on my mortgage and trying to work with my bank in resolving this issue. My husband is not on my mortgage or the title as I bought this property way before we ever started dating. We actually do not have any accounts with each other. That means no credit cards, loans, or even bank accounts. The only thing that our names link us together are our tax returns and marriage certificate. He wants to purchase a house in his name only and since we live in a community property state we were not sure if this would be possible since I have bad debt, and if it would hinder him from doing so. Plus on a sad note he is wanting to purchase a house because we are getting separated. Please let me know if anyone knows anything to help me.

  1. Reply
    February 20, 2011 at 8:18 am

    Imagine im a bank / car dealer
    I see you have taken a loan out to go to school, and you paid every payment on time, and eventually paid it off.

    Personally, i’d think this is a positive thing.
    Just makes sense.

  2. Reply
    Spock (rhp)
    February 20, 2011 at 8:42 am

    all debt counts in determining your ratio of total debt payments to income

  3. Reply
    I'm a Man
    February 20, 2011 at 9:08 am

    If you can find a job and slowly pay off your college loans, it is “good” debt.
    If you can’t find a job in your studied field to pay off your college loans, it is bad debt.

    Sadly most college graduates in todays day and age are not only struggling to pay off their college loans, but they are struggling to find a job in the field that they chose to study in college. Some of my friends are thousands of dollars in debt and never even received a call back after applying for over 50 jobs. My personal opinion is that blue collar jobs will come back to America because of the incredibly high ratio of college graduates in todays day and age.

  4. Reply
    Beverly S
    February 20, 2011 at 9:52 am

    Yes he can, as long as he qualifies on his own. As long as you are legally married however, you will have to sign loan documents waiving marital rights.

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