A credit score is a precious thing to any person who hopes to live the American dream. If you want to buy a car, a home, or get a loan, then you need a decent score. Most people hope to one day buy a home and raise a family. The problem is, if you have student loans, it can complicate the process entirely.
When prospective home buyers go searching, they are usually told to reduce their debt first. It’s a common practice. Without a good credit score, it’s almost impossible to get approved for a mortgage. Yet, for so many, student loans are a major obstacle in their way. More students than ever are delaying life decisions due to their loans.
A lot of it has to do with how much they’re paying back each month. Students are paying anywhere between $400 and $1,000 each month to their lenders. That is seriously straining their budgets. And the fact that jobs aren’t always available right out of college makes the process even more difficult.
Student Loans Remain a Major Obstacle
According to reports, students who graduate college are delaying homeownership by seven years. That’s much longer than previous generations. They blame student loans for that. 60% of Americans with loans say their debt is the main consideration for why they’re waiting. As debt soars past $1.5 trillion, it’s not hard to see why.
Student loans represent as much as 42% of consumer debt in the United States. That’s a 130% increase in the decade since the start of the Great Recession. It proves that the recession itself had an overall impact greater than most realize. While the economy is growing and the job outlook is improving, many millions are stuck.
You don’t have to struggle under the burden of student loan debt by yourself. Most students just don’t know where to look. Financial Helpers is the leading source of information for loan help in the country. Call us today to see if you qualify for student loan forgiveness programs. You can reach us at:
Women are Impacted
A research study by NeighborWorks’ has found one group in particular who struggle the most with student loans: women. More than two-thirds of all loan debt holders are women. They hold as much as $900 billion of the $1.5 trillion. Women of color are particularly at risk of falling behind any other group.
According to the research, they found that 29% of women and 23% of men have student loans. 48% of those loans are carried by women of color. This shows a major contrast that is only perpetuating the racial wealth gap. Compare that number to only 15% of white men who have a student loan.
If you have a lot of debt in your back pocket, qualifying for a mortgage will be nearly impossible. Stacking different types of debt on top of each other isn’t recommended, either. If you can barely afford life renting an apartment, having a mortgage and paying property taxes won’t help. Focus on getting rid of your debt first.