A new survey released on Monday shows that almost 75 percent of people who are repaying student loans believe it is preventing them from purchasing a home. The survey, which was conducted by the National Association of Realtors and American Student Assistance, looked only at student loan borrowers who are current in their payments and are most likely financially ready to make a home purchase, The Washington Post reports.
A total of 71 percent of survey respondents said their student loan debt is hindering them from buying a home and over 50 percent say the delay will continue for over five years.
Between $20,000 and $30,000 was the most common debt burden, but 38 percent owe more than $50,000. When looking at these numbers, it becomes apparent why 69 percent say they do not feel financially secure enough to buy a home. Additionally, even if they did feel financially secure enough, 80 percent of respondents said they are unable to save for a down payment.
And it isn’t just first-time buyers that are feeling the effects of student loan debt. Just under one-third of respondents who are current homeowners say they are unable to sell their home and buy another because of their ongoing battle with student debt.
An interesting twist is thrown into the conversation, however, as some people believe many people who are burdened with student loans would actually qualify for a mortgage if they tried, but have been dissuaded from even making an attempt because of negative media reports.
The survey consisted of 3,230 respondents, 67 percent of which attended a four-year college and 27 percent attended a graduate/post-graduate school. 71 percent have full time employment and 14 percent are employed part-time but are seeking full employment.