It sure is an exciting time – seeing old friends in the hallways, meeting new faces that you’ve known on social media, hearing new ideas and finding out what’s going on with colleagues in other states…man, I LOVE NAR Legislative!
This morning, the first thing on my list was “The Impact of Student Debt on Housing Choices – Regulatory Issues Forum”. HUD Secretary Julian Castro started the meeting off with some very interesting statistics such as:
*70% of students will graduate with debt
*There was a 56% jump in debt between 2004 and 2014
*40 million Americans carry debt
Along with a bit more. Here’s the thing that jumped out at me – when I thought of student debt, I was thinking about those millennials just graduating from college. I failed to think about their parents who are helping them pay for school! The loans Mom and Dad have out have an impact on the housing market. They have to stay where they are (the home where the family grew up) where those folks that don’t have the debt burden are able to sell and downsize or move to a different part of the country.
This chart was pretty eye – opening. I’m sorry for the fuzzy so I’ll interpret for you: green = under 30; blue = 30 to 39; orange = 40 to 49; grey = 50 to 59 and red = 60+. The first column on the left is 2004, where the 60+ group had about 2%. in the far right column, that number grows to 5%. In the 50 to 59 ground, 2004 = 6%; 2016 that number is 12%.
So, as I wrongly thought every time I heard the words “student debt”, it isn’t just impacting our 30 and unders…it’s their parents and possibly grandparents as well.
Suffice to say that help is needed and, from the panels’ talks, it is here or on the way. There is a need for new repayment options (I believe one was either passed or is closed to being passed) and there is a need to fix loan servicing.
So – what’s the take away here? For me, become a better counselor and educator, and make sure that I have references for credit councilors and lenders who know what they’re doing when it comes to these situations. The millenials are out there and they still want that American dream. It’s just a little tougher to get to right now but, with our help, we’ll get them there. We need to stay up to date on what’s happening and, perhaps, help formulate the next steps to make this go a little smoother for all.