Ginny Gorman asks the $750 billion question. College graduates are leaving school with an average of $25,000 in student loan debt, Some with much more. How will this affect the housing market in the future?
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It may be bigger than the housing bubble and many of you already know the answer to this question:
student loan debt.
Student loan debt is on the rise as students parents who would try to help fund college costs have had to rein in the money pipeline to take care of their own debt and retirement. CNN money says that the average college graduate is graduating with at least $25,000 of student debt and believe it is much higher than that figure.
So what that does that have to do with housing or the U.S. economy?The lack of jobs is creating a pressure on graduates to delay paying on their student loans as well as defaulting on them. This is a real and actual concern to the U.S. economy and to all real estate and associated industries. People who do not have money, have poor credit just can not buy houses which makes this $750 billion question very distinct and a problem.According to FICO risk professionals on their most current updates on student loan debt impact, these risk managers see student loan delinquencies rising dramatically. And as you may or may not know, there is no wiping out student loan debt with bankruptcy…it remains as a debt to be repaid in the borrowers lifetime.
Although we hear all this smoke and mirror talk of how real estate is improving it certainly is all local. We need to be thoughtful and realistic that the housing crisis is not the only issue that has and will continue to hit this economy and impact the continued housing recovery.This is reality and the U.S. government has not taken ownership of addressing how our future graduates will be able to buy real estate with this increase of debt on their backs. Yes, the $750 billion question needs answers.
It impacts everyone’s future livelihood, way of life, style of life and home ownership. So tell me is it a $750 billion Question?
Ginny Lacey Gorman is a North Kingstown Realtor who works and knows the Southern RI geographic area of homes for sale, schools, happenings, important tidbits of information and businesses well. Waterfront, water view, ocean front, luxury and coastal RI real estate are her specialty, so call Ginny for your buying and selling home needs. As North Kingstown short sale agents, she and her team helps clients navigate successfully the rough short sale waters throughout RI, contact Ginny if you are having trouble paying your mortgage. When you are in need of an internet savvy RI realtor® who sells homes in this real estate market, call Ginny today at 401.529.7849.
This blog © and its contents is original to Ginny Lacey Gorman
Ginny L. Gorman a purveyor of Fine RI Real Estate
Specializing in waterfront, ocean front, vacation, coastal and luxury homes for sale in North Kingstown, South Kingstown, Narragansett, Jamestown, Charlestown, East Greenwich, Exeter, West Greenwich, Westerly RI and beyond ... I sell dreams! because there is no place like home...the RI Realtor in the Sparkly Red Shoes.
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cell: 401.529.7849 office: 401.884.4100 ext.268 Ginny Lacey Gorman, Realtor
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