For generations, buying a home has been a defining milestone of becoming an adult. Unfortunately, this goal is becoming harder and harder for some young adults to obtain, and it is not necessarily because of a rough housing market or overpriced homes. Debt — student loans in particular — are holding back many young adults from not just buying a home, but also from doing many other things with their lives. As such, debt relief through bankruptcy could be the helpful for some people who struggling.
Getting a college education is often the key to securing a good career in Florida. Unfortunately, the cost of college is out of reach for many students, leaving them with no other options than to take out student loans. The average 2017 college grade left school with about $40,000 in student loans, and 40 percent of all borrowers are expected to default on their student loans by 2023. According to some experts, student loans have hit a crisis point.
Loans are also keeping young adults out of the housing market. In 2014, only 36 percent of adults between the ages of 24 and 32 were homeowners. However, in 2005, 45 percent of people in this age group owned their own home. This 9 percent decrease in home ownership is believed to be directly related to the increase in student loan debt.
While it is not impossible to buy a home when a person has student loans, it can still make the process incredibly difficult. For those who are struggling with paying back those loans, owning a might seem like an out-of-reach dream. However, this does not have to be the case. While student loans typically cannot be discharged during bankruptcy, achieving debt relief from other forms of debt — including credit card debt — can help people in Florida achieve a more secure financial foundation for their lives.