The $750 Billion Question?

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The $750 billion Question?

 

It may be bigger than the housing bubble and many of you already know the answer to this question:  

Student Loan Looming Debt Crisis in the U.S.

Answers Needed!

 student loan debt.

Student loan debt is on the rise as students parents who would try to help fund college costs have had to rein in the money pipeline to take care of their own debt and retirement.  CNN money says that the average college graduate is graduating with at least $25,000 of student debt and believe it is much higher than that figure.

 

So what that does student loan debt have to do with housing or the U.S. economy?


The lack of jobs is creating a huge pressure on graduates to delay paying on their student loans as well as defaulting on them.  This is a real and actual concern to the U.S. economy and to all real estate in the housing industry and associated industries.  People who do not have money, have poor credit just can not buy houses which makes this $750 billion question very distinct and a problem.

According to FICO risk professionals on their most current updates on student loan debt impact, these risk managers see student loan delinquencies rising dramatically.  And as you may or may not know, there is no wiping out student loan debt with bankruptcy…it remains as a debt to be repaid in the borrowers lifetime.
In the RI real estate world of homes for sale, sales of southern RI homes sold in 2011 were down in numbers overall.  Yet, there is a steady supply of buyers right now with good credit that realize housing is plentiful and good deals are to be made.

Although we hear all this smoke and mirror talk of how real estate is improving it certainly is all local.  We need to be thoughtful and realistic that the housing crisis is not the only issue that has and will continue to hit this bumpy economy and impact the continued housing recovery.

This is reality and the U.S. government has not taken ownership of addressing how our future graduates will ever be able to buy real estate with this increase of debt on their backs.  Yes, the $750 billion question needs answers.

It impacts everyone’s future livelihood, way of life, style of life and home ownership.  So tell me is it the $750 billion Question?
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 Ginny Lacey Gorman is your go to North Kingstown Real estate agent for real estate in North Kingstown RI and beyond…knowing the geographic area, schools, happenings, important tidbits of information and businesses well.
 As North Kingstown short sale agents, if you are having trouble paying your mortgage contact Ginny to help you through the short sale process successfully.
   Waterfront, oceanfront, luxury and coastal RI real estate are her specialty but all of RI is her backyard.   When you are in need of a good professional for your buying and selling needs and an internet savvy agent who sells RI houses in this real estate market – call Ginny at 401.529.7849.