We understand that this is a very specific post. But one of our readers had a question on how to approach this situation. Ultimately, what happen was that during the process of taking out a home loan, simultaneously, the reader also took out a student loan. Therefore, if you are ever asked for an LOE (Letter of Explanation), you can use the following template:
Subject: LOE For The New Credit Inquiry - [Address of the home - Last Name of which the loan will be under]
To The Recipient Of The Letter-
Given rise and pursuant to an [reason for credit inquiry, in this case the major and degree], I took an educational loan to help fund the credits. The [degree] shall lend itself to acquiring the necessary prerequisite credits for the [here you will put the implications to the loan. For instance, if you are obtaining a Masters in Accounting or a JD in law for either a CPA or to take the bar].
The loan, currently in deferment, requires interest payments of [put the minimum payment if you are required to make the interest]. The tenure of the deferment should be for the next [xx] years.
For any more clearance or if you require further attention please do not hesitate to ask. For proof of the attendance or proof of the loan agreement, please do ask.
[Your Contact Information]