Here's Why Student Loan Debt is Hurting Housing Recovery

The average student loan debt for those under age 30 has surged by 60 percent over the past seven years.
That’s just one fact that fuels a missed opportunity for a generation to enter the recovering housing market, and purchase properties left behind by the Baby Boomers who are retiring and downsizing.
The Bipartisan Policy Center’s Housing Commission just released an infographic (see below) that illustrates how skyrocketing student loan debt hinders a full housing recovery.
The center’s release coincides with the doubling of the interest rate on the subsidized Stafford student loans. The jump to 6.8 percent takes effect Monday after lawmakers failed to agree on a compromise that either would have extended the lower rate or established a market-based solution to future student loan rates.
Meanwhile, as the outstanding student loan debt nears $1.25 trillion, concerns grow as to how this new bubble will depress new household formation and potentially delay a full housing recovery.
Today’s graduates do have some good news to inspire them. The average starting salary for recent college graduates is up five percent over the last year and there is a sustained downward trend in credit card debt.
But here’s the downside, BPC found. The job market is still tough for young people. And while salaries are on the rise, the unemployment rate among recent graduates has nearly doubled since 1999.
Paying back the debt is difficult.
Recent data shows that 44 percent of graduates are not paying their loans because they are in forbearance or deferral and another 17 percent are delinquent, leaving only 39 percent of all student loan holders making on-time payments.
Here's Why Student Loan Debt is Hurting Housing Recovery

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