7 months ago
According to the statistics, student loans are keeping many in the 24 to 32 age group from buying a home. And here is what the Typical Student team will tell you about!
First things first, in the 2005-2014, the number of young people who own homes lowered from 45% to 36%. What’s more, 20% of them came from the education debt burden. Needless to say, the problem is obvious. Student loan and the debts ex-students still have when they are graduated did lower level of home ownership over the past decade.
Federal Reserve Economists
As expected, Federal Reserve economists studied the problem for a long time. They wanted to see the impact that the $1.5 trillion in educated-related loans have on students or ex-students aged 24-32. The investigation showed that students loans are playing a significant role.
“In surveys, young adults commonly report that their student loan debts are preventing them from buying a home,” Fed researchers Alvaro Mezza, Daniel Ringo, and Kamila Sommer said in a paper released Wednesday. “Our estimates suggest that increases in student loan debt are an important factor in explaining their lowered homeownership rates, but not the central cause of the decline.”
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