With more 20-somethings than ever before making their way through college with the assistance of financial aid and student loans, more young adults are burdened with the heavy load of trying to pay off student loan debt. Combine that with a less than desirable job market, and you have a ton of people who are struggling to get by and are waiting longer than ever to make a permanent life somewhere.
Reports show that the student loan debt amount has tripled since 2005 to a whopping $1.1 trillion. The number of households with people between the ages of 20 and 40 with $250 or more each month to pay toward student loan debts has also tripled, reaching 5.9 million. With home sales, especially to young adults, becoming sluggish in that same time frame, people are starting to believe that there must be a connection.
The Federal Reserve Bank of New York found that young people with student loan debt are now less likely to hold a mortgage than people who never attended college, which is a reversal of previous trends. In times past, those with higher education were more likely to be able to afford a mortgage thanks to higher earnings.
As less people are buying new homes and adding to the housing market because of their overwhelming student loan debt, the more the housing market suffers. Some studies have found that the affect may be overblown, but one thing is sure: student loan debt is constantly growing, and a closer look at it and the way it works with the housing market will need to be a thing of study in the future.
Fortunately, there are options for helping to pay off student loans. If you’re struggling with student loan debt or have questions about your options, contact a student loan lawyer about how you can better manage your student loan debt.