Student Debtors Steering Clear of Auto, Home Loans
New Federal Reserve Bank of New York study shows declining borrowing rates
By Kevin Spak, Newser User
Posted Apr 18, 2013 5:11 PM CDT
Student loan debt is weighing consumer debt down.   (Shutterstock)

(Newser) – The well-documented and much-fretted over explosion in student loan debt could be doing serious damage to the housing market and auto industries, as graduates strive to avoid going deeper into debt, according to an analysis posted on the Federal Reserve Bank of New York's blog. For the first time in at least a decade, people without student loan debt are more likely to have a mortgage than people with it.

The same trend can be seen in the auto loan market. And while the average total debt of students and non-students has remained in more or less lockstep since the financial crisis, that's because student borrowers decreased their non-sudent-loan debt by an average of $15,364 each to compensate for a $9,677 increase in student loan debt. "Highly skilled young workers have traditionally provided a vital influx of new, affluent consumers," the authors write. But "unprecedented student debt may dampen their influence in today's marketplace."

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Showing 3 of 89 comments
VAlice
May 12, 2015 5:27 AM CDT
With the amount of debt have accumulated from going to college, I highly doubt I will ever get a house of my own or a new car, and I will probably have to wait to find an apartment I can afford and click here to borrow money with no hassle every time the new bills appear. I would advise all high school graduates to either go to a community college or vocational school, so that after getting out of those schools they are only a few thousand dollars in debt. The only high school graduates who should, in my opinion, try to get a bachelors or masters at another type of college are kids that come from very wealthy families.
okaragozian
Apr 22, 2013 6:46 AM CDT
financial debt=slavery. It's not that you want to go to work it is that you have to go to work.
JackNelsonSteward
Apr 19, 2013 3:22 PM CDT
When you graduate school deeply in debt, and enter the job market carrying $100K in debt, how you gonna get credit for a$250K home ... or even a $35k car?