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These are the ways student loans stop people from buying a house – www.cnbc.com

These are the ways student loans stop people from buying a house

  • Eighty-three percent of people ages 22 to 35 with student debt who haven’t bought a house yet blame their educational loans.
  • Owning a home, the most common way Americans build wealth, can become a distant dream for many crushed by student debt.

by: Annie Nova

In the late 1990s, Ed McKinley fell in love with a $65,000 house by a lake in New Hampshire.

The owners let him move in early and pay rent until the buying process was completed.

Inside his new home, McKinley installed a modern stove, painted the walls and began to redo the floors.

Then came the bad news.

“The mortgage company decided that my income-to-debt ratio was a little bit higher than they were comfortable with,” McKinley, 59, said.

They were referring to his $34,000 in federal student loan debt.

He had to pack up and leave.

“It’s crushing,” McKinley said, choking up. “I have a very strong desire to own a piece of land that I can put my signature on.”