Our nation’s student loan debt, estimated to be near $1 trillion, is negatively impacting the U.S. housing market. College graduates are altering their decision-making process regarding finances because they are feeling overwhelmed with debt as soon as they graduate. One market that is being hit heavily is the housing market. Young college graduates that used to be a rich source for new home buyers are slowly disappearing.
Student loan debt can make it extremely difficult for graduates to qualify for mortgage loans. To a lesser extent, it can also impact the individual’s ability to purchase new vehicles. In fact, student loan debt is preventing garduates from making any large purchases.
Economistst have been warning for years that the increasing student loan debt load would impact the nation’s economy. Additionally, in 2014 the standards for qualifying for a mortgage loan were heightened, so the impact on the housing market is significant.
The Consumer Financial Protection Bureau has requested the lenders of private student loans to make recommendations for ways to provide relief to borrowers. However, until the U.S. economy improves and graduates have the ability to obtain jobs with higher incomes, it is going to be difficult for them to qualify for credit. Sadly, if you are paying your student loans, you can’t afford to buy a new home.
Contact The “Milwaukee Bankruptcy Attorneys,” DeLadurantey Law Office. LLC. DeLadurantey Law Office focuses on student loan debt, Chapter 7 and 13 bankruptcy, debtor’s rights, debt negotiations, debt relief, mortgage loan modifications, and foreclosure defense. A “defender of the little guy, “DeLadurantey Law Office serves the following location – Milwaukee, South Milwaukee, West Milwaukee, Waukesha City, Waukesha Town, Kenosha, Racine, and all other municipalities in Milwaukee County, Waukesha County, Kenosha County, and Racine County. We can be contacted by phone: (414) 377-0518 and can be found on the Internet and on Facebook.