Student debt has now passed the total debt for car loans and credit card debt. This is making it more difficult for young people to buy a home. Home ownership among those aged 24-32 fell to 36% from 45% in the period between 2005 and 2014. U.S. student loan debt now totals $1.5 trillion.
The Federal Reserve reports that accruing higher student loan debt reduces your ability to afford a down payment on a mortgage or secure a loan. A recent Harvard Institute of Politics poll found that the majority of Americans across the political isle see lessening student debt as an extremely important goal for Congress. Furthermore, 57% of millennials believe that student debt is a major problem for young Americans. Another 22% see it as a minor problem.
If you are sending a child off to college, try to be proactive in taking steps to reduce student debt. Try saving money starting at a young age. If you deposit $10 per week into a child’s education fund, they will have over $9300 saved up on their 18th birthday, which is a good start. Also, remember to meet application deadlines for financial aid and college applications. If you miss a deadline, money is distributed on a first come first serve basis. Lastly, always remember to meet your minimum payments.
