Approximately three-quarters of people who have student loan debt say it is hindering them from purchasing a home, according to a recent survey. Although a college degree increases a person’s chances of obtaining a good job and a secure future, the survey found that many would-be homeowners are increasingly burdened by student loan debt.
Seventy-one percent of those surveyed said their student loan debt is delaying them from buying a home. More than half said they expect that delay to last longer than five years.
With 43 million Americans carrying nearly $1.3 trillion in student debt, the burden is affecting all parts of the economy. The home ownership rate among those 35-and-younger has declined from 44 percent at the height of the housing boom to 34 percent today.
Forty-three percent of those surveyed carried between $10,001 and $40,000 in student loan debt, while 38 percent owed $50,000 or more. The most common debt range was between $20,000 and $30,000.
As a result of their student loan debt, 69 percent of borrowers said they did not feel financially secure enough to buy a home, while 80 percent said they cannot save up enough for a down payment. This is not only affecting first-time home buyers, but also “move-up” buyers. A third of those surveyed who are current homeowners said they cannot afford to sell their home and purchase another because of their student loan debt.
Among the reasons cited were the expense of moving and upgrading to a new home, credit problems caused by student loan debt and owing more than their home is worth because student loan debt has limited their ability to pay more than the minimum on their mortgage payment.
The 33-question survey was sent to 75,000 student borrowers, of which 3,230 responded. Among the respondents, 67 percent attended a four-year college and 27 percent attended a graduate/post-graduate school. Two-thirds went to a public institution. Seventy-one percent are employed full time while 14 percent are part-time but seeking full-time employment, according to the National Association of Realtors and American Student Assistance, who conducted the survey.
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For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.
