Educated Americans Unable To Buy New Homes Due to Debt Problems

The current slow economy and poor employment opportunities have made it impossible for the young educated Americans to invest in any new home project. The other core reason is that they have already undertaken loans earlier.

The bad economy has caused these educated learners to have bad credit scores, as they are unable to pay back the loans that they have already undertaken. Thus with bad credit scores they cannot invest in any other types of mortgages, especially new homes for themselves.

Most money lenders calculate the money that is pending from these educated students and try to extract as much as possible. With more students paying their debt loans, the scenario in investing in new home loans seems bleak.

More graduates are now living with their parents

There was a time when graduates would seek options for new homes. But today the scene seems to have reversed. There are a growing percentage of students who have graduated recently and are staying with their parents or planning to stay with their parents. An online survey has estimated this student percentage to be around 36%. Thus these graduated students are saving on their expense and with time be able to build a credit history.

But currently the percentage of graduated students investing in new homes is low. The age group mainly affected is between 18 yrs to 32 yrs old students and the percentage stands around 34.3% in March this year.

For the first time ever, non graduates were investing more in new homes then graduate students according to an estimate made by New York Federal Reserve.

Loan problems faced by students

Most students like Danilla Di Martino are of the opinion that the salary they are earning is much lesser then the salary needed to pay their current mortgage loans. Danilla DiMartino who works as an accountant in a PR firm graduated in 2012 and earns around $33,000 but she has a debt of $33,000. When she makes her monthly payment of 700$ debt payment, she is left with no option but stay with her parents.

Pending Heavy Student Loan Amount

The other realistic problem faced by educated students is pending student loans which are heavy on their credit scores. Shane McClelland a divorce attorney makes a great salary as a 27 year old. But he has a heavy student loan of $200,000 pending. This makes him difficult to invest in a new home, despite the fact that he is earning well. Here he has to make a monthly payment of 2000$ and this stretches and limits his standard of living. Shane also had a bad experience in a loan agency where he was refused to fill up a simple loan sanction form because of his current debt condition.

Expensive school loans making problems to get new loans

Danielle DeBacker has a heavy schooling debt of $80,000 which makes her live a frugal life and does not own a car. But she had expensive education and is currently doing a job as a research co coordinator in the clinical field.  She feels that she can own her home only after her 30’s.