According to the Federal Reserve Bank of New York blog, the Fed has determined that thirty (30) year olds without student loan debt are more likely to own a home while those with student loan debt are not.
According to Meta Brown, Sydnee Caldwell and Sarah Southerland of the Federal Reserve, “student debt holders have levels of education on average, and hence higher income potential.”
However, that changed in 2012 wherein, for the first time thirty (30) year olds with no history of student loans were more likely to have mortgages then those who have student loan debt. The study shows that thirty (30) year olds with student loan debt were less likely to have bought a home in 2013, even though the housing market had improved.
What You Should do if You Can’t Afford a Home Because of Your Student Loan Debt
There are many affordable income based plans for Federal student loan payments to get your student loan debts under control so that you can save for a down payment on a home.
For example, under an income based repayment plan the amount of your payment is no higher than 15% of your discretionary income and with the PAYE payment it is base on a 10% of your discretionary income. Potentially, this can result in a payment as low as five dollars ($5.00) per month. Just think how much money you will be able to save towards a down payment on a house, if you’re in an income based repayment plan!
What Should I do next?
Contact student loan lawyer, Nancy Cavey, who can help determine whether you qualify for an income based repayment plan and which income based repayment plan is best for you and your financial future. Call 727-828-9955 for more information.