Editorial: Student debt becomes a real drag

A Penn State University student walks across campus A Penn State University student walks across campus in front of Old Main on main campus in State College, Pa on July 12, 2012. Photo Credit: AP

advertisement | advertise on newsday

Soaring college debt is undermining a key segment of the nation's economy: Home ownership.

advertisement | advertise on newsday

In 2012, for the first time in at least a decade, 30-year-olds with no history of student loan debt had a higher rate of home ownership than those with a history of student loans, according to the Federal Reserve Bank of New York. That's a remarkable reversal from 2003 to 2009, when 30-year-olds with student debt -- a marker of higher average education and income -- had the higher home ownership rate. But making monthly payments on student debt, which now averages more than $20,000 per borrower, makes it hard to save for a down payment and to qualify for a mortgage.

So student debt is not just a drag for borrowers, it's also a drag on the housing market and is likely impeding the nation's economic recovery.

Sign up for the Opinion newsletter and get the latest analysis delivered to your inbox.


Newsday.com now uses Facebook for our comment boards. Please read our guidelines and connect your Facebook account to comment.

You also may be interested in: