Student Debt Isn’t the Roadblock to Homeownership Many Believe
While the burden of student debt is worrisome for many, it may not be the drag on homeownership that some thought.
Total student debt in America has more than tripled in the last decade to more than $1.3 trillion in April, according to data released on July 8 by the Federal Reserve. Meanwhile, the U.S. homeownership rate is near a 48-year low at 63.5 percent, according to the Commerce Department’s report for the first three months of this year.
But a recent study shows that having a college degree increases the likelihood of homeownership, even with student debt.
An analysis of data from Fannie Mae’s National Housing Survey® shows that people with student loans who received a bachelor’s degree, or a higher level of education, are 27 percent more likely to be homeowners than high school graduates who didn’t attend college and have no student loans.