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Except it counts against you for mortgage applications so in one very important way it is exactly like a debt.

• Broken_Hippo 10y ago
  But this is fairly practical and honest: I'd want to know if the person had student loans taken out of their paycheck before giving a mortgage. It might make a difference on how much I loan the person: They obviously don't have the disposable income as another person making the same wages yet not having a loan taken out.
• sveiss 10y ago
  It only counts against you for mortgage applications because it reduces your net income, just like any tax does. A rise in general Income Tax rates would have a similar impact. It doesn't show up on your credit report, you can't miss a payment and damage your future creditworthiness, and lenders don't include the value of the loan when calculating your total indebtedness. It's much closer to a graduate tax than a personal loan for mortgage purposes.
• jdietrich 10y ago
  That's not entirely true. Your student loan repayments are deducted from your net income when calculating affordability, for very obvious reasons. The amount of debt isn't a factor and student loans aren't recorded with credit reference agencies. Student loans don't significantly affect the affordability of housing. If you're on a salary of £30,000, your student loan repayments will reduce your net income by less than 4%. http://www.moneysavingexpert.com/students/student-loans-tuition-fees-changes#creditfile http://www.moneysavingexpert.com/students/student-loans-tuit...