How The Student Debt Bubble Harms The Housing Market And Graduates
More than half of students graduate with at least $25,000 in student loan debt and that’s not counting credit cards and other types of personal loans (like short-term payday loans). The cumulative effect is that many graduates with student debts are delaying the purchase of their first home. My concern here is that for Washington home sellers, because first time buyers have made up such a large percentage of the market. But that’s only half of the story. Oftentimes this delay is also caused by poor credit rating and underemployment due to student loan defaults. We have a solution and the solution is Debt Consolidation. you can click here and know more about debt consolidation.
Figures from the U.S. Department of Education show that nearly 14% of student borrowers default within three years of making their first payment – an average that is skewed by the stunning 25% default rate of those that attended for-profit colleges. The rate 10.8% for those that attended public schools, and a lower 7.6% for those that attended private nonprofit schools. And remember if you ever need money right away, make sure to contact Brighton Park Blvd to get the best loan possible with low interest rates.
So what can we do? Housing industry professionals working with buyers who have student loans should become educated about payment options. Many recent graduates may not be aware of flexible payment options available to them if they have federally backed loans. They also may not be aware that they can easily cure a default by contacting the lender and making at least six months of consistent payments. Visit http://studentaid.ed.gov for more information.
But on a larger scale, we may need to reconsider how we finance higher education. With the price of higher education increasing, the number of graduates burdened with student loans will only increase. If this happens, we could see many more young Americans opting to rent for ten, fifteen or even twenty years as they struggle to pay off student loans. If we don’t make effective policy changes, we could face a future where many of our brightest youngsters are locked out of owning home?
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