Are Students Loans Preventing College Grads From Buying Homes?
It’s often said that gaining a four-year education is the way to properly enter adulthood. College graduates are experiencing difficulties more than non college-grads because they are in a deep hole of student loan debt. It is problematic for thousands of folks trying to make it these days, especially with the decline in the economy.
The problem with College Loans
The real problem with college loans being so difficult to repay quickly. Buying a home is something many young people want to do, and feel that they have earned after studying for four years and doing the work it takes to graduate—sadly, most will not have that opportunity unless federal law changes loan interest rates.
The heavy loans are more common than one might think: seven out of 10 college graduates leave school with a huge bill and growing interest rates. It’s tough to move on in life, financially and otherwise, when loan debt is hovering like a dark cloud over every step of your journey. Many students and non-students alike wonder whether the burden of such an expensive loan is worth the education they’ll receive. After all, garnering a Bachelor’s degree does not guarantee employment whatsoever.
For some, it is worth the long task of repaying student loans. For others, this is simply not the case. Depending on the type of career desired, a college education is not necessarily always needed. Many college-aged people see their friends graduating and are shocked how much money they have to pay back.
Some preoccupy themselves with worry concerning the wealth gap in the United States. It seems that student debt may be driving a wedge between those who are wealthy enough to pay their loans back and others who might be paying back their loans until the day they die.
A person who isn’t buried in student loan debt is likely to invest their money in a home.