“the Impact Of Student Loan Debt On Millennials’ Financial Well-being”

“the Impact Of Student Loan Debt On Millennials’ Financial Well-being” – In the midst of the housing crisis of 2012, where we saw foreclosures and short sales, a simple question was asked: How will families pay for college when there is no equity or housing for leverage?

Probably a lower enrollment rate, an increase in online community or college enrollment, or “borrowing” from An alternative source is the answer.

“the Impact Of Student Loan Debt On Millennials’ Financial Well-being”

Today, students have borrowed $ 1.23 trillion in loans. Student loans are the No. 1 debt class in the United States, surpassing all credit card debt combined as of December 30, 2015.

How Student Loan Debt Affects Borrowers’ Love Lives

When we talk about things that affect the housing market, we usually focus on things like the environment, regulations, loans or mortgages. We use terms like “credit box” TRID, DTI, PMI.

With all the discussion on debt and more specifically on student loan debt, the National Association of REALTORS® has decided to walk out of the box and examine how student loan debt is building housing and possibly the future. Of our country.

The NAR hired American Student Assistance (ASA) to conduct a comprehensive study resulting in the 2016 Student Debt and Housing Report. The study surveyed 1,000 student debtors and found that the average student loan debt was about $ 25,000.

What is worrying is not only the amount of debt, but also the impact it has on the establishment. Housing as well. 71% said student loan debt was their cause for a delay in buying a home, and the delay was about five years. You might think,

Student Debt Is Transforming The American Family

. But at the same time, they may also face other factors, including raising property taxes, lower house prices and lower inventory, which can keep them out of the home for longer.

We are currently experiencing the lowest attendance rate of first time buyers. Nationwide, it was 32 percent, the lowest level since 1987. The average consideration is usually 40 percent, that is a significant loss of operation.

Annual operations in Chicago are approximately 14,000 (as of June 2016). With a loss of eight percent participation rate, that is an additional 1,120 transactions that do not put money back into the economy. Multiply those 15, 210 transactions by $ 24,000 per transaction… and that is $ 26,880,000 that our local economy can really afford.

For those who have a student loan debt and are now the owner, they can use home loan products as a way to reduce or eliminate Their debt through Home Equity Line of Credit (HELOC) or Cash Out Refinance. These options can now operate in an environment where interest rates are low all the time and some student loan debt rates are as high as nine percent. Of course, this is a FICO score and an equitable boost.

Pros And Cons Of Student Loan Consolidation For Federal Loans

For buyers, consolidate student loan debt and work with a lender who will guide you on how to improve your credit and understand HUD rules regarding student loan debt.

There are currently seven bills in Congress that can help not only these students, but also our economy. One example in the house is H.R. 3179 “Student Empowerment through Improved Financial Counseling Law” which focuses on educating and preparing students to deal with debt before accepting such obligations. And in Sen. S. 1948, “Access to fair financial options for debt repayment” provided additional repayment options.

What can I do as a REALTOR®? If you are focusing on first time buyers, look to add other marketing segments. Start meeting with lenders and provide education and strategies to help your clients get out of debt as soon as possible. Use the Consumer Financial Protection Office (CFPB) website, which has rich information on student loan debt before withdrawing any loan, and learn how to manage debt once you have it. Lastly and most importantly, contact your MP / Women and tell them to support the law that will propel our economy forward in terms of student loan debt. WATERTOWN, Mass., May 16, 2016 // – A new survey released today shows that student loan debt is affecting people’s lives in unexpected ways and the economy as a whole. Round as a result. From freshly retired classes to Baby Boomers nearing retirement, 72 percent of student debtors say it affects their daily lives, and 77 percent say it makes it harder to “live life.” “My way the way I want to be.” With 35 percent of job openings expected to require at least a bachelor’s degree by 2020, [1] the new data presents a difficult outlook for current and future borrowers and their employers.

And conducted by Kelton Global shows that while student loan debt really hurts people financially, it is more than money in stocks.

Part 2: Is Student Loan Debt The Next Financial Crisis In America?

As a result of student loan debt, surveys have found that employees are giving up their dream job and dropping out of school in the future:

“Instead of paving the way for success, in some cases these big education bills are having the opposite effect,” said Chris Duchesne, vice president of EdAssist. “The amount of student debt that people are having is making them spend on dreams and ambitions and will give employers the potential for innovation, innovation and next big idea.”

The EdAssist survey found many more ways of defining student loan debt, continuing the lives and careers of every generation of Americans. Eight percent of those with student loans acknowledge that it causes hardships in their lives and are preventing them from achieving major life events such as buying a car (56 percent), buying a home (50 percent) ) Or opening a credit card (41%). . Forty-nine percent will delay an engagement or marriage because of debt, and 21 percent are struggling to start a family. Seven percent of those with student loan debt say it limits their ability to save for retirement.

“Many people see student loan debt as a millennial issue, but the worry is that it is not,” said John Eshleman, manager of Benefits, Memorial Hermann Health System in Houston, Texas. “Between taking on debt for dependents and the high demand for a degree in the workforce today, people of all ages are indebted to student loans. As employers, we want to see our employees lead productive lives. “Happiness and fruitfulness with the level of debt. – Individual tenure facing today, we feel it is right from the point of view of recruitment and retention to alleviate this burden for our employees.”

How Student Debt Worsens Racial Inequality

For details and analysis of the survey results, see EdAsist report “Student Loan Debt: Who Says?”

About EdAssist “Student loan debt: Who pays?” The survey study was provided by independent research firm Kelton Global in April 2016. The response was made up of a survey of 1,024 Americans aged 18+ with student loan debt. The margin of error for the survey is plus or minus 3.1 percentage points.

A leading provider of tuition and student loan repayment services for major employers. By aligning educational programs with talent goals, EdAssist promotes measurable improvements in recruitment, retention, and employee engagement. The company’s unique approach to program management includes software platforms for program management facilitation, expert advisors who guide employees to the best educational and financial decisions, and discounts from accredited educational institutions. More than 200.

About Kelton Global Kelton Global is a research consulting firm that transforms rich insights into actionable strategic plans. Kelton integrates market research, insights into brand culture, communication and design to move the brand confidently into the future. With offices in Los Angeles, Chicago, New York and London, Kelton is proud to work with over 100 Fortune 500 companies and thousands of other well-known brands. For more information, visit www.kelonglobal.com.

Infographic: The Impact Of Student Debt On Millennials

[1] Georgetown Center on Education and Workforce Recovery: Demand for Employment Growth and Education by 2020 June 26, 2013

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