The Impact of Student Loan Debt

According to Forbes, there is about $1.7 Trillion dollars in student loan debt. Which is understandable why student debt is delaying consumers decisions to purchase a home and hampering their ability to save up for a down payment on a home.

Since 2013, the National Association of REALTORS® (NAR) has collected primary research examining the effect student loan debt has on successful and potential home buyers. Over the last eight years, patterns in the data have emerged which demonstrate student debt is one of the biggest hurdles holding potential buyers back from being able to save for a down payment on a home or to qualify for a mortgage due to the loan holder’s debt-to-income ratio. With rising home prices and declining housing affordability, student debt greatly reduces a home buyer’s buying power.