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Student loans –the end of homeownership?

by Joe Zekas on 4/23/13

The American Interest, commenting on a study by the Federal Reserve Bank of New York:

For the first time in ten years, 30-year-olds with a history of student debt are less likely to buy homes and cars than their debtless counterparts. Or in other words, a college degree, while offering a potential career boost, may be holding the young back from acquiring other major markers of adulthood.

Is student debt a driving factor in the declining ownership rate among 30-year olds? Does the group attach less value to ownership or are they merely delaying ownership?

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{ 1 comment… read it below or add one }

moray April 23, 2013 at 9:58 AM

The biggest flaw that I see in this chart: it doesn’t account for the possibility that individuals who spend money on a degree are able to pay off their student debts at a faster rate. In other words, those who used to have student debt at age 30 may be paying it off at age 28 in today’s climate.

Not saying that’s the case, but its impossible to determine from that chart.

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