Student loan debt has a significant impact on young people's ability to get on with the normal milestones of life, including owning a home, starting a family, launching a business, or saving for retirement.
A leading financial commentator notes the overwhelming impact of student loans on house ownership: "the fact is that 83 percent of people age 22 to 35 with student loan debt who have not bought a house blame it squarely on their overwhelming loans – not their age, and not their careers"
Jennifer Beeston, a leading mortgage broker states that: “I think student loans are our next big financial crisis as a nation. Student loans are the largest issue I’m currently seeing in potential homeowners. In many cases their student loan payments are as much or more than mortgage payments.”
Although the commentators are speaking from a US perspective, New Zealand student loan borrowers are in many ways in a worse position, as at least, in the US, there are government schemes that allow people with disabilities, long term debt, or government service to have their loans forgiven. There are also many, quality, universities that charge no or low fees, giving young people the chance to start their professional lives without crippling debt.
A leading financial commentator notes the overwhelming impact of student loans on house ownership: "the fact is that 83 percent of people age 22 to 35 with student loan debt who have not bought a house blame it squarely on their overwhelming loans – not their age, and not their careers"
Jennifer Beeston, a leading mortgage broker states that: “I think student loans are our next big financial crisis as a nation. Student loans are the largest issue I’m currently seeing in potential homeowners. In many cases their student loan payments are as much or more than mortgage payments.”
Although the commentators are speaking from a US perspective, New Zealand student loan borrowers are in many ways in a worse position, as at least, in the US, there are government schemes that allow people with disabilities, long term debt, or government service to have their loans forgiven. There are also many, quality, universities that charge no or low fees, giving young people the chance to start their professional lives without crippling debt.