Bruce Mesnekoff discuss about student loan debts and the housing recovery. HeyBrucemesnekoff, welcometo our radio station intampa, today wehavequestion from ourlisterns question isbHowStudent Loan Debt Affects TheHousingRecovery Thanks Jessicaforinviting me toyour studio. Yes, it effects, Each andeverystudent,Now that the financial crisis has slowlystarted to fadeawayand thereal estate market is back on track, the mortgagerates and the home prices areextremelylow– this is whymanyyoung couples and students arelooking forward to buyingahouseof their own. However, manywereunable to do so dueto student loans– add atemporaryjob to that and buyingahome is an impossible mission. Jessicato BruceMesnekoff: So BruceMesnekoffWhyweeverytime talking about financialcrisis?how student stuffers from it. Thosewho havetaken astudent loan and arein debt maynot be eligiblefor amortgage,as the student loan debt is getting in the way. First-time buyers haveadifficult time purchasing a home if theyare weighed down bystudent loans, especiallythose whosedebt tops $100,000 or even more.If severalyearsago oneout of two Americans was afirst-time buyer, now oneout of three people is buying a homeforthe first time, during thehousing recovery– this is caused mainly dueto theburden of student loan debt who forcespeople to adapt and toeither stick to renting a home, orto moving with theirparentsorroommates. Over thepast decades, the number ofstudent loans has tripled and this aspect has adirect impact on the housing recovery.Ifwe calculatethe total student loan debt, thesum is above$1 trillion.In somecases, thestudent debt prevents peoplefrom getting an expensive largehome andforces them to reside to thelower version ofthehouse,while in othercases people maynot be eligible foramortgage at all. Most students who havetaken astudent loanfromundergraduate orgraduateschoolsmust repay it over a30-year period,and the monthlyrate is usuallyseveral hundred dollars. This is why manyare forced to live at homeforseveralyears in order to be able to applyfor amortgage and to payfor ahouse. Often,saving therent moneyisthe wisest and most efficient wayto raise the moneyand put a down payment on a house. Transitioning from renting ahome to owning ahome is adaunting task, leaving asidethe financial stress and pressurefutureownersaresubjected to– astudent loandebt makes the transition almost impossible for tens of thousandsof Americans. As statistics haverevealed, approximately30%ofthose who haveborrowed astudent loan aredelinquenton theirdebts,which automaticallyhasanegativeimpact on thecreditrating. The financial crisis has determined US banks to paymoreattention to the credit rating, thus leading
to a moreseverecredit environment that does not allow thosewith loan debt to applyfor a mortgagein thenear future. Buyingahigh-end propertyis just a dream formany,and they usuallyhaveto delaythehome purchaseprojectfor acouple ofyears to reorganizethe debt. Despitethe fact that mortgagerates and home prices arestill relativelylow,theyaremoving up quiterapidly. Again Thankyou Brucemesnekoffto coming toour studio and guideourlisteners on radio. Thankyour all our listeners ..your Jessicafrom tampa. ContactBrucemesnekofffor anyfurther assistance StudentLoanHelpCenterGeneralManagerBruceMesnekoffjoinsustoDiscuss theStudentLoanSituationinAmerica Youcanfind Brucemesnekoffon socialstoo.