Student Debt Can Hurt Borrowers for Decades — Even Those Who Don’t Default
In a recently published article, Tuition.io CEO Scott Thompson looks at the major impact that student debt burdens will likely have on borrowers’ futures, even well into their retirement. One impact that has not received enough attention is the potential decrease in home equity as a source of retirement wealth. That student loan debt is causing young people to delay home purchases is well documented. This means they will have less time to build equity in their home as property values increase. Because, for the average american household, their home equity represents over 70% of their entire net worth at retirement age, the diminished ability to gain home equity over the long run could be a long term crisis in the making.
To learn more, check out Scott’s piece at https://www.the74million.org/article/opinion-student-loan-borrowers-need-help-now-or-their-debt-could-hurt-them-and-this-country-for-decades-to-come/