Tag Archives: Student Loan Debt

Eight years of data show that student loan debt is one of the most significant barriers standing between a potential buyer and the ability to purchase a home. 

J.P. Morgan Chase reports that student debt has doubled in the past 10 years to $1.5 trillion in 2018—second only to mortgage debt—and impacts 45 million borrowers.  “Although the financial returns from a higher education degree over a lifetime typically ...

DS News has covered the issue of student loan debt and the negative impact on millennials’ economic mobility, but what if student loan debt could actually be beneficial in the long-run in making a homebuying decision?

The CFPB hears from hundreds of borrowers everyday about the impact that student loan debt has on their daily lives. Specifically, they cite that the debt continues to acutely affect students of color.

Recent reports saying that borrowers burdened with student loan debt are having a hard time attaining homeownership. Those reports may be exaggerated, however.

The study also shows that both, consumers with student loans and without loans were affected by the changes in the economy and shifts in credit access. Consumers ages 18 to 29 with credit obligations like mortgages, credit card, and auto loans declined significantly between 2005 and 2012.

A recent survey commissioned by NeighborWorks America, a Washington, D.C.-based non-profit community development corporation, revealed that nearly one out of four Americans knows someone who has delayed buying a home because of student loan debt.

The burden of student loan debt is preventing potential home buyers from starting households, which in turn is hindering overall economic growth, according to Consumer Financial Protection Bureau (CFPB) director Richard Cordray at the Announcement on Public Service and Student Debt on September 23.

Speaking before an audience at the Boulder Summer Conference on Consumer Financial Decision Making, CFPB director Richard Cordray spoke on the effects of student loan debt on the future of the housing market. The oft-criticized director commented on the growing $1.2 trillion of student loan debt, and how student debt will have negative ramifications on the housing market in the future.

The New York Fed recorded an increase of $129 billion in national outstanding household debt in the first three months of the year, bringing the total debt level up to $11.65 trillion. It was the third straight quarterly gain. Leading the increase was a rise in mortgage debt, which was up by $116 billion from the end of 2013, according to the bank.