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3 Types of Students Suffering from College Debt
Student Loan Debt is Hindering the Housing Market
We all have heard the news recently that student loan debt is a rising problem in America. Now to add to all the problems it causes, student loans are causing a drastic decline in Americans 20- 39 years of age from purchasing homes. Today national student loan debt is now at $1.1. Trillion, according to the Federal Reserve Bank of New York.
Paying for College Does Not Mean Taking out Student Loans
Today many students when thinking of applying to college they ask themselves, "How can I afford tuition?" From there they see taking out Student Loans as the only solution to achieve their dreams of gaining a college degree. Taking out loans could lead to borrowers being overwhelmed by debt; therefore they become unable to repay their loans in time, and are forced to deal with default. For debtors who feel like they have no way out they seek to file for bankruptcy. However, student loans are not the only way affording college is possible.
Student loans hurt economy
38 million Americans face a staggering $1 trillion in student loans. Instead of investing in their future by purchasing a home, the graduates face the daunting task of repaying their student loans. The housing market was fueled at one time by these first time buyers, but no longer. First time buyers generally accounted for 40 percent of home purchased on the market. In May 2013, that number has shrunk to 28 percent. Americans paying off student loans are, depending on income, 25 to 36 percent less likely town a home than those who are free of student debt.
