The impact of student loans
It’s no secret that crippling student loan debt keeps many Millennials from buying a home. But according to new data, Millennials with student loan debt aren’t just less likely to own a home. When they do buy? They face more expensive mortgage loans and lower home values, too.
Buying a home with student loan debt
According to a new study from MagnifyMoney, the homeownership rate among Millennials with student loans is just 34 percent — two percentage points lower than those without loans.
Of those with student loans who do own a home, they have higher mortgage balances — a median of $104,000 versus $98,000 — and lower home values. Homeowners with student loan debt have properties valued 5 percent lower than those without it.
The analysis also showed that Millennials with student loan debt have a lower net worth than those without student loans (75 percent less, in fact). They also have nearly $19,000 less saved for retirement and half as much money…