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Impact of Student Loan Debt on Homeownership Trends and Vehicle Purchasing 2013

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(And it’s only become worse. Ed.)

May 2013 Web Survey of 61,762 individuals, collected via email lists from a
network of not-for-profit organizations.

  • Survey respondents reported an average length of repayment period of 21.1
    years, but was typically longer for those with advanced degrees
  • 20-year repayment limit forgiveness programs appear more likely to benefit borrowers with
    Graduate Degrees than individuals with other levels of educational attainment
  • Strong correlation between Student Loan debt and renting, rather than having
    a mortgage or owning a house outright (barrier to broadly accepted policy
    goal of encouraging home ownership: “American Dream”)
  • Home ownership was 36.1 percentage points higher among survey respondents who have
    already paid off their student loans across all income categories.
  • Survey respondents with student loan debt were significantly more likely to
    purchase a used vehicle, rather than a new vehicle, when compared to those
    without student Loan debt
  • May reduce new vehicle spending by as much as an estimated $6.4 billion annually in the US.

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