OUR TIME DAILY TRANSLATION
We've heard you say it many times: "Politics is like a foreign language." Well, we agree.
Each week, we summarize, simplify, and interpret different major news stories and how they affect our generation. We'll give you our take, and you can decide for yourself.
College graduates typically earn more than non-college graduates over their lifetimes, yet the average 30-year-old who earned a bachelor’s degree in 2004 is most likely ineligible today for a home mortgage because of a high debt-to-income ratio.
The typical 30-year-old college graduate looking to buy a home would need to spend about half of his or her monthly income on mortgage, student loan, credit card and car payments. That individual wouldn’t qualify for many home loans, including Federal Housing Administration mortgages, which have lower requirements.
WHY WE SHOULD CARE
Not only are members of Generation Y faced with unprecedented levels of student debt, but now that student debt is now preventing them from being able to obtain financing for purchasing homes. The growing list of negative repercussions of America’s student loan crisis underscores the need for reforming our student loan systems.
OUR TIME OPINION
We have an obligation to ensure that higher education remains affordable, otherwise the effects of student loan debt will continue to bode poorly for long term economic growth via the housing market.