While politicians posture about forgiving all student loans you ought to know the magnitude of the debt they are attempting to forgive and it amounts to bad news about student loans. In an article published in Florida Realtors, the following are the results of a survey done by realtor.com which should distress every taxpayer in Florida and in this nation.
“SANTA CLARA, Calif. – Total student debt could buy every U.S. house on the market 1.9 times over, according to a study from realtor.com. With the rising costs in education, students borrow more and more money, which has led to delayed homeownership. The average student loan borrower owes $34,500 – $8,500 more than the typical down payment of $26,000.
“In Florida, the numbers are similar. Total student debt in the state is $75.9 billion, according to realtor.com, with 2,197,000 borrowers. If these Floridians want to make a 10% down payment on a home, their down payment vs. debt ratio is 72.4%.
“Student debt has ballooned to an all-time high as the price of education continues to outpace wage growth, and this is holding back many potential buyers from being able to purchase a home,” says realtor.com’s Senior Economist, George Ratiu. “Student debt is already impacting borrowers’ ability to buy a home and education debt is expected to hamper consumers’ financial decisions for many years down the road.”
“Nationally, the median sale price of a U.S. home is $260,000. With a typical down payment of 10%, that would come out to $26,000, which is $8,500 less than the average student debt of $34,500.
Additionally, the total value of U.S. homes on the market is $780 billion – 1.9 times less than the total outstanding student debt of $1.5 trillion shouldered by 42.8 million borrowers.”