Mortgage News

Student Loans- A Big Reason Millennials Won’t Buy Homes

January 30th, 2015

Student loan debt is one of the biggest reasons millennials struggle to buy homes.

However 2015 is expected to be a big year for student loan reform. Right now, the federal Pay As You Earn program allows newer borrowers to cap monthly student debt payments at 10 percent of a person’s disposable income.

The government hopes to expand the program to people who took out student loans before October 2007 or stopped borrowing by October 2011.

If approved, almost 5 million more (mostly young) people will feel relief from student debt and potentially have more money to buy a home.

Here are tools for millennials to learn about student loans:

If you have any questions about student loans and how they might impact your clients as they purchase a home, please contact me at 757-490-4726, or srubin@tidewaterhomefunding.com.