Student loans are becoming a drawback to the housing market and its long term recovery reports Housingwire.com.
In general, student loans are a great way to fund education, and pay back the loan over time. Unfortunately, the current economy is in a weakened state, and lack of available jobs means fewer student loans are being paid back on time. The average debt is $25,000 per student.
Housingwire reports that the number of 25-34 year olds living with their parents has risen 26% since 2007.
Carrying this debt will make qualifying for a mortgage a bit more difficult when it comes to buying a home. Loan officers use very specific ratios to compare debt to income and other financial guideposts. Having an additional $25,000 loan to pay each month might be the difference for someone buying a home next year, or having to wait another year or two. This can only slow down the housing market’s resurgence.
For more info on this Housingwire.com article, visit: http://www.housingwire.com/2011/12/12/surging-student-loan-debt-threatens-homeownership?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+housingwire%2FuOVI+%28HousingWire%29
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