(C) Common Dreams
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83% of non-homeowners say student loans are the reason they can't afford to buy [1]
['Emmie Martin', 'Cfp']
Date: 2019-06-28
Fewer young people are buying houses than their parents and grandparents did at the same age. And for many, student loan debt might be to blame.
In its 2019 Home Affordability Report, home co-investment company Unison found that 83% of non-homeowners said student debt is the reason they can't afford to buy a home right now. Generally, they're delaying buying a house by around seven years because of it, the report found.
That's especially true for millennials: "A recent study by the Federal Reserve found that every $1,000 increase in student loan debt causes a 1 to 2 percentage point drop in the homeownership rate for student loan borrowers during their late twenties and early thirties," Miron Lulic, founder and CEO of financial comparison site SuperMoney, tells CNBC Make It.
It's not surprising, given the rising cost of higher education. "Student loans are the fastest growing source of debt for U.S. households," Lulic says. "Since 2007, student loan debt has grown three times faster than auto loans and 150 times faster than mortgages."
For the 1987-1988 school year, students at public four-year institutions paid an average of $3,190 in tuition, according to College Board's "Trends in College Pricing 2017" report. But for the 2017-2018 school year, that average had risen to $9,970 — a nearly 213% increase.
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[1] Url:
https://www.cnbc.com/2019/06/28/83-percent-of-non-homeowners-say-student-loans-are-the-reason-they-cant-afford-to-buy.html
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