Topic: Bank Accounts Levied to pay Student Loans

In the past, the companies I have worked for in my region (southeast) have never counted student loan or medical debt when considering an applicant's approval for residency.

Yesterday, one of my tenants called and said his income tax refund was withdrawn from his checking account to pay for an old student loan debt. His check was returned NSF.

I feel I need to count student loans just like any other account on the credit report now.

Anyone have any comments about this situation?

I'm surprised he got his refund at all... usually the IRS hands it over and you get a fun little letter stating that your refund has been redirected to pay for your defaulted student loan.

If your applicant is not a current student enrolled at least half-time (varies by school), I would count the student loans. The deferment period once you graduate or drop out is short. Once the loans are out of deferment, Sallie Mae doesn't care what other bills you have. Not only will you lose your refund, they WILL aggressively garnish.

Ask me how I know, lol.... Lesson learned!