Student Debt Takes a Toll on Some Home Buyers - Article Example

Statistics indicate that homeownership among young people who are through college and who are under 35 years of age has reduced from 43% to 36% since 2004 and this is a massive decrease.

Even though with the reduction in inflation the debts are bound to be reduced, this is just a speculation and is yet to be fulfilled. The government should be encouraging an increase in homeownership amongst the younger generation and they should start with a reduction of the interest rates on college loans. The increase in interest is discouraging those aspiring to join college to pull back as they foresee a future with no other development other than student loan repayment which is bad for the economy in the future.

Even though the college student loan comes as a savior for most families that cannot afford a college education, it is still a burden people are continually afraid of and it drains their morale of development leading to homeownership for example for old people who are not bound to enjoy more.