Of Student Debt and Stagnant Wages

Student debt is bearing the blame for continued weakness in the housing market.  According to the Washington Post, “regulators and industry experts warn that young adults can no longer save for down payments or qualify for the mortgages they need to buy their first homes.”

But Rohit Chopra, student loan ombudsman for the Consumer Financial Protection Bureau, points out that debt burden alone does not tell the whole tale for first-time homebuyers:

“Real wages when adjusted for inflation have actually been flat for new college graduates for about the past ten years. So young people have more debt but are earning the same or less income.”

How are you paying for school?

The National Center for Education Statistics released the results of its 2011-2012 National Postsecondary Student Aid Study, a survey that measures how students and their families are paying for higher education.  The AP’s summary of the study (find it here in the Washington Post) emphasizes that increased federal grants are not enough to offset the double whammy of declining state and school aid and rising tuition.