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According to First American Financial Corp, new research indicates that having a higher education improves your chances of owning a home despite rising levels of student loan debt.

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“Millennials’ quest for higher education is good news for the housing market because it appears that education is the key to not only greater earning power, but homeownership as well,” said First US Deputy Chief Economist Odetta Kushi.

Millennials, or people aged 24 to 39 in 2020 largest living adult generationAccording to the Pew Research Center. They range from deep professionals in their careers to recent graduates or even those still in school. and they are more educated than previous generations, Recent Findings From First American Show.

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Higher education level pays

Millennials are currently one of the most educated generations, First American reports. By the time they reached their mid-40s, 30% of Baby Boomers had a bachelor’s or higher degree. Gen Xers reach the same point in their late 20s and millennials reach their mid-20s.

Millennials with bachelor’s degrees had a median household income of $101,000 and those with bachelor’s degrees had a median household income of $120,000. This compares to a median household income of $60,000 for millennials with a high school diploma or $35,000 for those without.

These higher incomes have provided college-educated millennials with more homeownership opportunities, even in the midst of higher levels of student loan borrowing. The homeownership rate among millennials with a bachelor’s degree was 9% higher in 2020 than those with a high school diploma.

If you’re interested in being a homebuyer and taking out a mortgage loan, but are struggling with student loan payments, consider refinancing to lower your monthly payments by taking advantage of lower interest rates. Visit Credible to Compare Multiple Student Lenders at Once And choose the lender with the best rate for you.

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Student loan debt can delay homeownership

While college graduates are more likely to buy a home than non-graduates, student loan debt can pose a major hurdle and slow down that process. In fact, 51% of all student loan holders say that the impact of student loan debt has delayed them buying a home, according to one a recent study From the National Association of Realtors (NAR).

But while the process may be delayed, data from First American showed that those who attend college will eventually see higher homeownership rates because of their increased income.

“In 2000, the difference in homeownership rates between those with a high school degree and those with a college degree was 3.7%,” Kushi said. “By 2020, this gap has almost doubled to 6.9%.”

Refinancing your student loans in the midst of today’s record-low interest rates can save you on your monthly payments and enable student loan holders to buy a home. If you are interested in refinancing your student loans, Get in touch with a trusted student loan specialist to talk to And, Get Your Questions Answered.

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