While no one should have to suffer to get an education, that seems to have become the American way for many student loan borrowers. For students who might have little chance of going to college otherwise, the student loan becomes an attractive idea once all grant and scholarship resources have been exhausted. Students loans are used by individuals in all circumstances, leaving them with hefty loans in common later.
Student Loans Are Putting Pressure on Young People
With the average student loan payment hovering at around $351 for borrowers from ages 20 to 30, it’s easy to understand why the pressure is on for so many after leaving school. If you are a borrower between 20 and 30, chances are you are still working to establish a career as well as a steady income.
Many Student Loan Borrowers Are Holding off on Major Commitments & Spending
And while some who do not graduate still go on to find great jobs, for many, the monthly student loan payment is challenging regardless; in fact, so much so that as we’ve discussed in a previous blog, many borrowers feel like they must hold off on life while they wrestle their student loan debt. They may delay all the milestones we once considered ‘normal’ after college: getting married and having kids, buying a car, and taking on a mortgage.
New HomeBuying Programs Target Student Loan Borrowers
While many are still shying away from real estate due to its downfall in recent years, a whopping student loan payment is certainly enough to cause major hesitation. And even if younger people were interested in buying homes, they very well may not qualify due to their debt load. A recent article points out that there may be more hope on the homebuying horizon for student loan borrowers though, as companies like Fannie Mae may offer new programs.
“There are definitely a group of consumers that haven’t even tried to apply for a mortgage or figure out what they can afford because of the anxiety of their student-loan debt hanging over them,” said Betsy Mayotte, director of consumer outreach and compliance for the Center for Consumer Advocacy at American Student Assistance.
The numbers still may not add up in favor of buying a home for those with a heavy debt load—and specifically with student loans—but progressive programs for homebuyers are currently available through Fannie Mae, Maryland’s SmartBuy, New York’s Graduate to Homeownership, and Ohio’s Grants for Grads.
Contact Us for Help With Your Student Loan Debt
If you have questions about your student loan debt or if repayment is currently a challenge, contact Fitzgerald & Campbell, APLC, a law firm with decades of experience in helping clients to explore their financial options. Let us review your case and help you decide the best route. We are here to help you!