A new survey by the National Association of Realtors (NAR) shows that seventy-one percent of non-homeowners say repaying their student loans on time is hampering their ability to buy a home, and slightly over 50% of all borrowers say they expect to be delayed from buying by more than five years.
NAR chief economist, Lawrence Yun, says the survey findings bring to light the magnitude student debt is having on the housing market and the budget of even those financially able to make on-time payments. Yun further stated:
“A majority of non-homeowners in the survey earning over $50,000 a year – which is above the median U.S. qualifying income needed to buy a single-family home – reported that student debt is hurting their ability to save for a down payment.”
“Along with rent, a car payment and other large monthly expenses that can squeeze a household’s budget, paying a few hundred dollars every month on a student loan equates to thousands of dollars over several years that could otherwise go towards saving for a home purchase.”
This survey was a joint effort with SALT, a consumer literacy program provided by nonprofit American Student Assistance.
“It is imperative to the nation’s economy that we find immediate and practical solutions to financially empower the 43 million Americans with student debt,” said SALT President John Zurick. “SALT is committed to demystifying the college financing process by giving consumers information, instruction and individualized advice. No one should fail to realize the full potential of their formal education simply because of finances. We invite the higher education community, the U.S. government, the private sector and others to join with us in this movement.”
I’m LoanSafe.org’s mortgage expert and a senior loan officer with Prime Lending. If you need a live rate quote, or need help getting a new mortgage, please call me direct anytime at 619-379-8999.