The majority of Millennials, who are now between the ages of 25 and 40, say student loan debt hinders their ability to buy a home.
That’s the main finding of a new survey released by the National Association of Realtors, which partnered with Morning Consult for a report titled âThe Impact of Student Loan Debtâ.
The survey of 1,995 student loan holders was conducted online by Morning Consult between June 10 and June 16, 2021. The results have a margin of error of +/- 2 percentage points.
According to the report, 60% of non-homeowner millennials said student loan debt delayed their ability to buy a home, making this generation by far the most affected population.
The results also showed that Americans burdened with high student debt see the effects on their daily lives, saying they often have to choose between investing in retirement, buying a house, getting married, starting a family, or saving money. savings side.
âHousing affordability is getting worse, leaving future home buyers with student debt at a great disadvantage,â said Charlie Oppler, president of NAR, Franklin Lakes, NJ real estate agent, and CEO of Prominent Properties Sotheby’s International . “Young Americans shouldn’t have to choose between education and homeownership.”
He added that NAR continues to pursue policies that “ensure that the American dream remains available and accessible to those who continue to pay for their college education.”
The new survey also found that only 23% of student loan holders understood the costs of attending college before taking out their loans. Additionally, 35% of student loan holders said they did not fully understand their earning potential after graduation.
According to the survey, 51% of all student loan holders – including homeowners and non-homeowners – said their debt delayed them in buying a home. Another 36% said student loan debt delayed their decision to leave a family member’s home; this percentage rises to 52% among black creditors.
Ultimately, the report found that 31% of all millennials and 28% of black student debt holders would use the extra funds to buy a home in the future without student loan debt.
âIn addition to just buying a home, this report finds that more than half of people with student loan debt have delayed some form of major life choice,â Oppler said. âStudent loan debt doesn’t just seep into housing affordability. It also affects other aspects of people’s lives. ”
NAR said it supports a multi-pronged approach to tackling the student loan debt burden. He suggests expanding financial education to help students make decisions about funding their studies, while simplifying aid programs. For those with student loans, NAR said the opportunities to consolidate and refinance debt at lower rates would help debt holders lower their monthly payments, make large purchases and make wise lifestyle choices. . Finally, NAR said it favors expanded tax preferences for employers who help employees with student debt, as well as tax exemption for creditors whose debt is canceled or paid off by their employer. .