As the presidential election draws closer, we have heard a lot about the importance of rethinking student loan debt. The amount owed for student loans is higher than money owed to credit cards and is now over $1 trillion. In today’s market, first time home buyers are being rejected by banks because the amount they owe (on student loans, credit cards, and cars) would be crippling when paired with a mortgage. Mortgages payments generally take up 33% of someone’s monthly income, and high student loan debt makes it hard for young home buyers to stay afloat. Experts suggest paying off loan debt significantly before embarking on making a large real estate purchase; they also suggest restructuring and consolidating student loans so that they can be paid off over time.
For more information on paying off student loans, click here.