Young? Have Student Loan Debt? No House for You
April 12, 2013 - If you’re a student or the parent of one, you’re quite familiar with the ever-increasing costs of higher education. Many students have been saddled with enormous debt. Bloomberg News points out how that debt overhang is making it difficult -- if not impossible -- for young people to qualify for a mortgage to purchase a home.
The story notes that ”two-thirds of student loans are held by people under the age of 40, according to the Federal Reserve Bank of New York, blocking millions of them from taking advantage of the most affordable housing market on record. The number of people in that age group who own homes fell by 4.6 percent in the fourth quarter from the third, the biggest drop in records dating to 1982.”
And this comes just as the housing market is starting to recover, with some areas enjoying double-digit price gains -- only making it harder for people in this group to buy a house.