A recent survey revealed that the vast majority of people paying off student loans are also struggling to purchase a home. In fact, the survey found, one of the major reasons for these individuals’ inability to buy a home is their college-related debt.
The survey was conducted by two groups: the National Association of Realtors (NAR) and American Student Assistance (ASA). The National Association of Realtors is a trade association that includes residential and commercial realtors, while American Student Assistance is a non-profit organization dedicated to helping students finance and repay their higher education through student loans.
The population surveyed by the NAR and ASA was limited to people with student loan debt, with a particular emphasis on borrowers who were able to remain current in loan repayments. This way, the survey slanted toward individuals who should be better prepared financially to afford a new home purchase. Of course, this also makes the results of the survey even more shocking.
The survey found that 71 percent of respondents were interested in buying a home but needed to delay the home purchase because of crippling student loan debt. Beyond that, more than 50 percent of respondents indicated that this delay would likely last for five years or longer.
Accumulating Too Much Student Loan Debt Can Cause Problems Down the Road
On the one hand, getting a college degree can prove incredibly helpful when a person enters the job market in search of a steady paycheck, which can in turn make it easier to afford the down payment on a new home purchase. On the other hand, many potential homebuyers find themselves so overwhelmed by student debt – which typically cannot be discharged in bankruptcy – that they end up postponing a home purchase and opt instead to rent.
To learn more, read the Washington Post article, “Student Loan Debt Is Hurting the Housing Market, Survey Finds.”
If you are thinking about buying a home in New Jersey and are currently struggling with debt, you should speak with a qualified real estate and debt management lawyer immediately. Joel R. Spivack, Esq., is an experienced real estate and debt relief attorney who can offer guidance when it comes to debt-related issues. He can also help you throughout the NJ home buying process. Contact Mr. Spivack now to schedule a free consultation.