Homeownership dream dies for many under 40 due to student loans.

The American dream for many is to drive a nice car, own a nice home and have a great job.  Unfortunately that dream is dead for many under 40.  Young people are leaving college with student loan burdens that would choke a horse – $1.4 TRILLION and counting; surpassing credit cards to become the largest source of personal debt outside mortgages.  Interest rates for financing a home are increasing, plus loan terms are more restrictive than in the past.  According to an article in the New York Times the ability for those in their 20s and 30s to buy a home is dramatically reduced due to the burden of paying their student loans.

Parents face their own financial burdens and cannot help pay for all or part of their children’s student loans.  Leaving their children with few options: don’t go to college, but work at a minimum wage job for the rest of their lives; work part-time while going to school (which can double the time to complete school) or borrow loans to finance school.

The cost of higher education has erupted in the last few years.  The more financial funding that is made available the more the cost of education rises.  Which leads me to wonder about the greed of our higher education systems.  Are they in the business to educate our children or make money?  Read more...

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Diane L. Drain

Attorney, consumer advocate and retired law professor

About Diane Drain:

Diane is a well respected Arizona bankruptcy and foreclosure attorney. As a retired law professor, she believes in offering everyone, not just her clients, advice about Arizona bankruptcy and foreclosure laws. Diane is also a mentor to hundreds of Arizona attorneys.

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