Can Teachers afford to buy a house?
To become a teacher, the cost of a four-year degree in education at USF is $102,560. For FSU it is $90,500. For UCF the cost from start to finish is $89,016.
To get an FHA mortgage, FHA allows 45% of your income to be encapsulated by one’s debt- which includes a mortgage. If a borrower has student loans in deferment, or on an income-based payment, they must take 1% of the outstanding balance as a mock payment- in the case of the schools mentioned, minimally that would be $890. If they are on an extended standard payment plan, the monthly cost would be roughly $580.
So let’s do the math.
The starting salary for a teacher in the state of Florida is roughly $46,000. That means FHA will allow them a mortgage of $1725. But once you take out the $580 for the student loan payment, that mortgage possibility drops to $1145. Sound reasonable? What about a car payment? If they own a car with a modest payment of just $280 (well below the average), their possibilities now drop to $865.
Do we force our teachers to be homeless and rent, or allow them to ride the bus?
Make the Choice. Make the Change. Delta.
To learn more about how you can eliminate your student loan debts if you are a teacher, call us today at 813-567-5855.