Many older millennials are carrying a debt of $70,000 to $100,000 in student loans. But each generation is effected with student debt. More then half of each generation of non-owners are delaying their homeownership plans because of student debt.
The added student loan debt is cutting into the ability to qualify for a home loan as well as making it difficult to save for a down payment. This burden is also being passed onto parents with adult children unable to leave home. Parents are also taking on student loan debt to minimize their children’s debts.
Student debt is a national issue and a common problem with 70% of college students borrowing money for college. The average graduate completes school owing more then 40,000 with payment over $300 per month. This effects the ability and buying power for car loans, home loans and is driving the use of credit cards up and is effecting our nations economy.
Hopefully in the next year we will find a way to relieve the need for large student debt. I heard some great alternative ways to pay it back may be in the works. There are also ways for student loans to be forgiven...it would be a great relieve if future employers would help where they can.
|Don't be the ONE|
As a mortgage loan professional, I strongly recommend if you have student debt to keep on top of it, communication with your lender is critical. Having multiple payments due on several loans can be hard to keep track of thus causing you to miss or pay them late adversely affecting your credit. I recommend that you consolidate all your loans into one loan for easier management and lower payment overall.
I see more people with credit issue due to student debt than any other reason. It’s crazy hard to get them cleared up and back on track. So please don’t ignore and put off dealing with your student loans.
When you are ready to purchase a home, or would like to see where you stand, give me a call or send me an email. We can work together to get you prepared to be in position to buy!
I believe in many cases if someone is thinking about buying a home and have student loan debt they are just discouraged and need guidance on how to make it work. More education about home buying and preparedness is needed. This education is available FREE! Just call me
For more information, the following paper is available
Finance and Economics Discussion Series Divisions of Research & Statistics and Monetary Affairs Federal Reserve Board, Washington, D.C.
Click here to review
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ACMC Loan Consultant
Certified Mortgage Coach