Student Debt Holds Back Many Would-Be Home Buyers

April 19, 2014
Los Angeles Times 
student loan news
Of the many factors holding back young home buyers -- rising prices, tougher lending standards, a persistently unstable job market -- none looms larger than the recent spurt in college debt.

Student debt is a key factor in the weakened market for home-buying activity this spring, according to the National Association of Realtors. A recent study by the group identifies student loans as the top reason many home buyers delayed their purchase and many more did not buy at all. Researchers at the Federal Reserve Bank of New York, meanwhile, report that the amount owed on student loans has tripled in a decade to approach $1.1 trillion, and people in their 20s and 30s -- a key home-buying population -- owe the most.

Traditionally, young homeowners were more likely to have student debt, because college graduates tend to earn more; but the New York Fed says that has changed since 2008.









Abstract News © Copyright 2008-2013 INFORMATION, INC.
Powered by Information, Inc.

Stay Updated

Join the fight against predatory lending. Enter your e-mail to sign up for breaking news, action alerts, and CRL's original research.

   Please leave this field empty
  

Help Us End Predatory Lending

Predatory lending destroys family wealth, and preys on our most vulnerable communities. You can help us end abusive lending practices by donating to CRL, or by sharing our work with others.



`