Friday, August 17, 2012

Student Debtors Might Not Get Mortgages

Inside Higher Ed
August 16, 2012 - 3:00am
People with student loans to repay, on average, might not qualify for mortgages because they have too much debt, according to a report  the advocacy group Young Invincibles released Tuesday. The group said that the average single debtor, with consumer debt, student loans and a mortgage, would have a debt-to-income ratio of nearly 50 percent -- too high to qualify for many mortgages. The report, which used average credit card payment minimums, average student loan payments and a range of household incomes, found that student debtors making the median salary for college graduates could have trouble getting a mortgage.
"At least for a time, they can be completely cut out of the market," the group wrote, warning of the economic consequences of such a barrier.

No comments:

Post a Comment

To eliminate spam comments at restricted to registered users. Additionally, all posts are moderated to further prevent spam and off topic discourse. We strive to post all on topic comments.