Student Loans: A Drag on the U.S. Housing Market

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New information reveals student loans have increased in both the number of borrowers and the amount being borrowed. As a result, analyst believe increased student loan repayments limit recent college graduates from pursuing home purchases.

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Student Loans: A Drag on the U.S. Housing Market

  1. 1. -That is the amount of outstanding student loan debt in the United States* -The Average Amount of Student Loan Debt Among 40 Million Borrowers* *Courtesy of MarketPlace.Org http://www.marketplace.org/topics/wealth-poverty/why-studentloans-affect-housing-market
  2. 2. *Courtesy of MarketPlace.Org http://www.marketplace.org/topics/wealth-poverty/why-studentloans-affect-housing-market http://ochousingnews.com/wpcontent/uploads/2014/01/student_loan_debt.png
  3. 3. *http://www.marketplace.org/topics/wealth-poverty/why-student-loans-affect-housing-market
  4. 4. Debt to Income Ration -Amount of Debt you owe divided (/) Gross Income (what you earn before taxes) -The higher your debt ratio, the less income you have available to spend (i.e. Mortgage Payment) http://www.advantageccs.org/understanding-what-debt-to-incomeratio-means
  5. 5. More Debt and Less Wages (earnings) -Together, recent college graduates are experiencing two factors that have emanating affects on the housing market and national economy http://www.foxbusiness.com/personal-finance/2013/01/02/if-its-risky-its-not-investment/ The more leveraged debt you owe, the less “desirable” you look to a bank or loan provider “What can you afford? What is your risk?” The riskier your profile, the higher your interest rate and the amount you would qualify to borrow
  6. 6. http://blog.estately.com/assets/broke-monopoly-july-27.jpg
  7. 7. More Reading and Resources Marketplace.org http://www.marketplace.org/topics/wealth-poverty/whystudent-loans-affect-housing-market New America Foundation: Student debt review http://inthetank.newamerica.net/blog/2014/02/studentdebt-review Consumer Financial Protection Bureau: Know before you borrow http://www.consumerfinance.gov/students/knowbeforey ouowe/

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