Student Loan Debt
Student loan debt is the main culprit hampering the housing recovery, says Rohit Chopra, the student loan ombudsman for the Consumer Financial Protection Bureau. Chopra says.”We are already seeing signs of economic drag from student loans,” “The impact on the housing market is the most troubling part.”
Chopra says, Student loan interest rates typically are at 8% or above. An estimated 7 million borrowers with student loans are in default.
“Student indebtedness impacts the credit profile of first-time home buyers,” Chopra says. “Three-fourths of the fall in household formation can be directly correlated to student debt.”
The CFPB will be serving as the new regulator that will oversee student loan servicing and lending. Chopra says the agency plans to address the issue of high student loan debt.
Read more Student Loans with FlatFeeNews: CFPB: Student loan debt hijacks the housing recovery
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Source: Housing Wire 10/08/2013