Students think their college education debt has impacted their chance to take out a mortgage
Many college undergrad and graduates have trouble paying for housing costs and rent due to their college education debts, according to a new study.
More than 44 million Americans have outstanding student loan debt, totaling more than $1.6 trillion, according to a report from Freedom Debt Relief. Around 47% of the respondents currently owe up to $20,000 or more for their cost of college education. Thirty-eight percent have to pay $100 or less per month, on top of other expenses.
Next to student loans, the top financial dilemma, housing costs was the second source of stress for college students and graduates. Around 14% said they were unable to pay their mortgage or rent because of college costs.
The respondents were also put off from buying a home, thinking that their student loan debts have impacted their credit scores (57%), as well as their abilities to get an apartment or house (36%).
Meanwhile, 59% said they couldn’t save money, 45% were unable to go on vacation, 43% could not afford to save for retirement, and 32% were carrying credit card debt because of student debts.
Ninety-three percent of the respondents believed that this represents a financial crisis, and 89% of parents agreed.