I'm puzzled about something........did a search, but couldn't find anything. Suppose you just graduated but your student loans are still in deferment and haven't began repayment yet (you know, that 6mth grace period after graduation). Or are about to graduate in a year or less and your loans are still in deferment. You're interested in getting a car. You have good credit scores, early 700's, a good-paying job at the moment, and so you scoot off to the dealership. You get the bank to try to finance you for the loan. They approve you initially, but later says that your application is pending review. They later tell you that your student loans (which are still in deferment BTW) are factored into your debt-to-income ratio causing it to be higher than what they require and b/c of the amt of your student loans, they won't be able to approve you for the car loan.

So, now you're stuck w/ good credit, but your student loans (keep in mind that they are still deferred) are screwing you up.

How does one deal w/ this? Is there a loophole or a way to get around it or are you just better off trying to pay down your student loans?

Yep, even deferred SLs are considered in your DTI. You're going to have to repay them eventually, right?

Yeah, they start repayment in November. Also wanted to know this b/c my BF got turned down for a car loan about 2 weeks ago b/c of this situation.

Thanks for the info though. So there's no way you can work around that? My BF really wants that car.

Get a better job. Pay off the loans or other debt. That's about it.

That's what I figured. Thanks a bunch!!!

I would suggest asking other lenders. I have all my loans through my local bank, which pullls reports but does not report themselves... they see all my loans, and i always talk my way into a loan with them. No income, BTW. But I have many years as an established custoimer with them, never missing a payment etc. So, i would suggest looking at other lenders. Don't let them just pullm your reports, of course. But have conversations with them and bring along a copy... and see what they say. Ya never know.