Many studies show the growing amount of student debt is holding Millennials back from entering the housing market.
Some lenders such as BurkeyLoan even began offering products such as the 120% loan-to-value ratio that allows first time homebuyers to bundle their student loans and mortgage. Fannie Mae is also offering several options for Millennials struggling with student debt.
Studies show keeping up with how much they owe in student loans is not college students’ strong suit, according to an article by Melissa Korn for The Wall Street Journal. Now, some states are requiring more disclosure.
From the article:
This month, Florida joined Indiana and Nebraska in requiring that colleges and universities provide detailed information about student debt and projected loan payments.
Under a law that went into effect July 1, Florida’s institutions of higher education will now have to provide students a yearly report detailing how much they’ve borrowed so far, their expected loan total and estimated monthly payment.
This law will only apply to federal loans, and will be required from all schools that disburse financial aid.
From the article:
A 2014 Brookings Institution report found about half of all first-year students in the U.S. “seriously underestimate” how much debt they have, and less than one-third can estimate their debt loads within a reasonable margin of error. Many also don’t understand that their financial aid is in the form of a loan. More than one-quarter of students with federal loans reported having no federal debt and 14% said they didn’t have any student debt at all.
