This piece was originally published at CNBC.
Student loan debt has become a major barrier to home ownership in America.
Some 45 million people in the United States carry student debt. The average borrower owes more than $30,000, according to Student Loan Hero, a website for managing education debt. Almost a fifth owe more than $100,000, according to the National Association of Realtors.
People’s monthly student loan payments can eat up a large slice of their income, threaten to push down their credit scores and make saving nearly impossible — all huge impediments, of course, to landing in a house.
For every 10 percent in student loan debt a person holds, their chance of home ownership drops between 1 and 2 percentage points during their first five years after school, according to the Federal Reserve.
More than 80 percent of people ages 22 to 35 with student debt who haven’t bought a house yet blame their educational loans, according to the National Association of Realtors.
“Student loan debt holders do want to own a home, that’s part of their American dream,” said Jessica Lautz, managing director of survey research at the National Association of Realtors. “It’s just really hard to get there right now.”…