Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

3/23/2012 (4 years ago)

Catholic Online (www.catholic.org)

Graduates with substantial loan debt unable to buy home sooner, studies suggest

Student loan debt in the United States stands at a staggering $1 trillion. While many students take out these loans in the hopes of better paying jobs, the massive amount of debt they acquire prevents them from buying homes shortly after graduating, adding to the already stagnant housing recovery.

Student debt is a burden not just for recent college graduates in their twenties, but also for parents who often co-sign their children's student loans, as well as midcareer professionals who opted to go back to school during the sluggish recovery.

Student debt is a burden not just for recent college graduates in their twenties, but also for parents who often co-sign their children's student loans, as well as midcareer professionals who opted to go back to school during the sluggish recovery.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

3/23/2012 (4 years ago)

Published in College & University

Keywords: Student loans, debt, home buying, marriage, parents,


LOS ANGELES, CA (Catholic Online) - The Consumer Financial Protection Bureau is a federal agency created in the wake of the financial crisis. Bureaus officials say that the $1 trillion in student debt is roughly 16 percent higher than an estimate earlier this year by the Federal Reserve Bank of New York.

The new figure, released this week at a banking conference in Austin, Texas is a preliminary finding from a study of student debt the bureau will release this summer. Bureau officials said the estimate is based on a survey of private lenders, as opposed to other estimates that rely on a sampling of consumer credit reports.

Officials say student loan debt is rising for several reasons. Among them are an increase in Americans going to college to escape the weak labor market. Tuition increases, which many colleges say are needed to offset big cuts in state funding also has many students taking out bigger loans.

The interest costs on older loans are climbing as borrowers fall behind on payments, reflecting mounting financial strains. New York Fed data show that as many as one in four student borrowers who have begun repaying their education debts are behind on payments.

Most economists agree that college is an increasingly good investment because of the widening pay gap between jobs that require a degree and those that don't. The educational degrees and added skills are meant to help workers earn higher incomes that, in time, will more than offset the student debt.

As more people go to college and assume bigger loans for education, they may take longer than previous generations to hit key milestones such as buying a house or getting married, officials say. It could take longer for heavily indebted graduates to save money for a down payment on a home or to qualify for mortgages.

Rohit Chopra, student-loan ombudsman for the Consumer Financial Protection Bureau, said student debt could ultimately slow the recovery of the housing market. "First-time home-buyers are a substantial part of the housing market," Chopra said in a recent speech. "Instead of saving for a down payment, these borrowers are sending big payments every month."

Student debt is a burden not just for recent college graduates in their twenties, but also for parents who often co-sign their children's student loans, as well as midcareer professionals who opted to go back to school during the sluggish recovery.

.

---


Pope Francis: end world hunger through 'Prayer and Action'


Copyright 2015 - Distributed by THE CALIFORNIA NETWORK

Pope Francis Prayer Intentions for April 2016
Universal:
Small Farmers: That small farmers may receive a just reward for their precious labor.
Evangelization: African Christians: That Christians in Africa may give witness to love and faith in Jesus Christ amid political-religious conflicts.



Comments


More College & University

Benedict XVI Centre approved by Holy See, but what will they be doing there? Watch

Image of The center will focus on religion and social sciences (CDJ).

By Kenya Sinclair (CALIFORNIA NETWORK)

St. Mary's University in Twickenham, London has been formally approved to name one of their buildings after Benedict XVI. LOS ANGELES, CA (Catholic Online) - According to its website, St. Mary's University will name one of their buildings the Benedict XVI Centre for ... continue reading


Alarming University campaign threatens First Amendment rights Watch

Image of The University of Portland asks students to report discrimination, interactions of intolerance and incidents of discomfort (Stefan Redel/Shutterstock.com).

By Thomas Heed (CALIFORNIA NETWORK)

The University of Portland recently launched a "Speak Up" campaign designed to put an end to discrimination, intolerance and "incidents of discomfort." LOS ANGELES, CA (Catholic Online) - The University's Speak Up website specifies inclusion is a top priority - one ... continue reading


Comparing some students to 'Catholic jihadis,' Mount St. Mary University president comes under fire Watch

Image of Mount St. Mary University President Simon Newman said in a memo,

By Adelaide Mena and Matt Hadro, CNA News

Amid uproar over comparing struggling students to bunnies that should be drowned or shot, Mount St. Mary's University president is now under fire for criticizing expressions of the Catholic faith at the school. Emmitsburg, Md. (CNA) - Already facing turmoil, the ... continue reading


The fight for religious liberty: How one Catholic college deals with threats Watch

Image of

By Matt Hadro (CNA/EWTN News)

The future of religious freedom in the United States will one day be in the care of today's college students, so one Catholic college is working to equip them for that struggle. Washington D.C., (CNA/EWTN News) - Wyoming Catholic College is trying to form a "community ... continue reading


4 reasons Catholic education needs your help this year Watch

Image of Are America's Catholic schools being attacked? (Wordpress)

By Kenya Sinclair (CALIFORNIA NETWORK)

The Catholic education system is coming under attack by a plethora of policies designed to make the hiring process, acceptance of anti-Christian viewpoints, transgender issues and Catholic identity concerns. LOS ANGELES, CA (Catholic Online) - The Cardinal Newman ... continue reading


Catholic identity or education: Are the top Catholic universities falsely rated by secular standards? Watch

Image of

By Kenya Sinclair (CALIFORNIA NETWORK)

A list of the top 40 traditional Catholic and Jesuit colleges in America was created, but were they rated fairly? LOS ANGELES, CA (Catholic Online) - Newsmax revealed their top forty Catholic and Jesuit colleges in America, but what were their standards?The United ... continue reading


Becoming Divine Mercy: A Mission of Mercy Watch

Image of

By Jessie Tappel, Communications Director at Divine Mercy University

God, the source of all mercy, provides us with an experience so great that we have no choice but to reflect it to our own brother and sister. Mercy calls for an outward response, which is made clear in the examples of the Corporal and Spiritual Works of Mercy. You can ... continue reading


UST Breaks Ground on New Center for Science and Health Professions Watch

Image of

By Darnell Miller - University of St. Thomas

The University of St. Thomas, a member of the world-renowned Texas Medical Center, broke ground on a new Center for Science and Health Professions on Nov. 12, 2015. The new facility, containing more than 100,000 square-feet of modern lab space and classrooms, will meet ... continue reading


Religion and Science: The Evolutionary Controversy

Image of

By Kyle Jorstad, Grove City College

Catholic Online welcomes scholarly submissions for consideration, contact marshconnolly@catholiconline.email Abstract: Though members of the scientific and atheistic community alike often tout science as the downfall of religion, theories regarding Darwinian evolution ... continue reading


Do you love America? What these college professors were caught doing on camera will shock you! Watch

Image of The Constitution codifies many liberties, including the right to shred the Constitution itself.

By David Drudge (CALIFORNIA NETWORK)

It should be no surprise that America's colleges and universities are overrun with anti-American liberals who lack all respect for the country and the principles upon which it is founded. In an age where political correctness has run amok, students are indoctrinated by ... continue reading


All College & University News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Subscribe to Catholic OnlineYouTube Channel

the FEED
by Catholic Online

Daily Readings

Reading 1, Acts 16:1-10
1 From there he went to Derbe, and then on to Lystra, where there was a ... Read More

Psalm, Psalms 100:1-2, 3, 5
1 [Psalm For thanksgiving] Acclaim Yahweh, all the earth,2 ... Read More

Gospel, John 15:18-21
18 If the world hates you, you must realise that it hated me before it ... Read More

Saint of the Day

Saint of the Day for April 30th, 2016 Image

St. Pius V, Pope
April 30: Pope from 1566-1572 and one of the foremost ... Read More