An overwhelming majority of Millennials with student debt do not own a home and believe this debt is the cause for the delay, a recent study from the National Association of Realtors and nonprofit American Student Assistance showed. NAR estimates this student debt could be delaying homeownership for up to seven years.
But now, a new study shows the student debt crisis could be worse than anyone thought. Currently, at nearly $1.4 trillion in outstanding loans, student debt is the second largest source of household debt after housing and the only form of consumer debt that continued to grow after the Great Recession, according to a new report from The Brookings Institution, a nonprofit public policy organization.
The study shows 40% of college entrants could struggle to repay their loans, and eventually fall into default. This represents a severe crisis for the student loan market and could have devastating impacts on their ability to purchase a home. And as the student debt crisis deepens, minorities are hit the hardest.
Read more in Housing Wire.