While student loan debt is surely a burden for a college graduate who is financially struggling, it turns out that this mounting debt is also a burden on the potential recovery of the housing market in Florida and around the rest of the country.
According to the ombudsman for the Consumer Financial Protection Bureau, over the past several months the total amount of U.S. student loan debt has reached more than $1 trillion. The average graduate also ends up accumulating around $23,300 in student loan debt.
What this in turn means is that more people are finding themselves in situations where their income after college is going toward paying down their student loan debt, instead of going into buying a home.
Additionally, while student loan debt has finally exceeded more than $1 trillion, it is becoming even harder for college students as the average wage for workers between the ages of 25 and 34 has actually decreased by 7 percent since 2001. This means that people are making less, yet owe more.
Looking to the future, the fear is that the housing market in Florida, and around the country, will continue to drag as less people buy homes due to their overall student debt and the fact that they are starting off after college making less money.
However, it should be noted, that while this is surely frustrating news for any recent graduates, or soon-to-be graduates, there still are debt relief options that may be available to people with student loan debt in order to help them gain financial freedom.
Source: Bloomberg, “‘Explosion in Student Debt’ Drags Down Housing: Chart of the Day,” David Wilson, April 17, 2012