Other than availability and the skyrocketing prices of properties across the United States, student loans continue to pose as a major barrier to homeownership among Americans.
It is estimated that there are 45 million people in the country that are still paying their student debt. Student Loan Hero, a company that manages education debt, reports that an average borrower has more than $30,000 in student debt.
The Federal Reserve shares that the chances of home ownership drop by 1 to 2 points for every 10% in existing student loan debt.
The National Association of Realtors reports that 80% of people between ages 25 to 35 who still haven’t bought their own house blame their educational loans. These individuals are usually denied when it comes to mortgage application because of their debt-to-income ratio, a metric used to gauge what a person has in loans versus how much money they make.