I'm completely obsessed with student loan debt. (Yes, I have issues.) Some people collect dolls or first edition books. I collect numbers related student debt. Here's some old and new numbers from the New York Times, which talks about how prospective home buyers have been turned down by mortgage lenders due to high student loan debt.
- Outstanding student loan debt now totals over $1 trillion, according to a report last month from the Consumer Financial Protection Bureau. That surpasses the amount owned on all credit cards in the United States.
- Last year alone, students took out $117 billion just in federal loans.
- Why? According to the College Board, the average annual cost of out-of-state tuition, room and board at a public institution is $29,657; at a private nonprofit, it is $38,589.
- Impact? Many first-time buyers get turned down for mortgages because their student loan debt significantly raises their overall debt level. Most lenders follow underwriting guidelines that limit total debt payments — for the mortgage and property taxes, plus credit cards, student loans, car loans and other debts — to 45 to 50 percent of a borrower’s adjusted gross income.
UPDATE: More on Student loan debt from James Poulos, Conor Friedersdorf, and the Economist.
