Student Loans Force Renting

They will mostly have to rent for quite a while.

Almost a third of student-loan borrowers in repayment weredelinquent at the end of last year, up from about a quarter in2008 and 20 percent in 2004, according to a report on householddebt and credit today by the Federal Reserve Bank of New York.

The amount of educational debt, which includes federally backed and private loans taken out by students and parents, has almost tripled in the past eight years to $966 billion, the bank said. With costs to attend college continuing to outpace the inflation rate, more borrowers are struggling to pay. That makes it harder for people — especially those between 25 and 30 — to secure other types of credit, including home mortgages.

via Rising Student-Loan Delinquencies Hurt Young Homebuyers – Bloomberg.

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