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Report: Mounting student loan debt may harm housing market Atlanta, GA

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Report: Mounting student loan debt may harm housing market

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With ever-increasing tuition costs and high student debt amounts, it is no surprise that fewer recent college graduates are finding themselves a financial position to buy a home than members of previous generations. But now, financial analysts are saying that the mounting student loan debt and resulting inability to make large-scale purchases could cause significant damage to the already-struggling housing markets in Georgia and throughout the country.

According to a new report, tuition expenses have risen about three times as fast as wages in the past decade. Specifically, tuition rose by about 57 percent since 2001, while the average wage for workers between the ages of 25 and 34 fell by 7 percent. At the same time, student loan debt has skyrocketed, with the amount of total student debt held by American college students and graduates exceeding a staggering $1 trillion in recent months.

With that number only expected to increase in the coming months and years, financial analysts believe that student loan debt will soon become a significant drag on the housing mortgage. Mortgage lenders will likely not approve applicants who have high debt-to-income ratios, and those who are approved will not be able to afford to take out a mortgage because of their debt has resulted in a prohibitively high interest rate.

As a result, the number of homeowners in the U.S. will likely decline. This is an unfortunate development for the housing market, which is desperately in need of new homebuyers for its own recovery. Clearly, something needs to be done about the amount of student loan debt in the U.S. before it starts to affect even more areas of our economy.

Source: Bloomberg, “‘Explosion in Student Debt’ Drags Down Housing: Chart of the Day,” David Wilson, April 16, 2012

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Jack L.

They did an excellent job with my case. Jamie took the time to really listen and understand things. She delved into the details and was extremely knowledgeable and non judgmental. Very professional and they know what they are doing. Would definitely recommend!

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Mr. Gingold was recommended by an attorney I had worked with previously. I met with Ira Gingold to discuss credit issues. He went over each specific issue thoroughly. He advised me of the potential outcomes. He did all this in one meeting for a very reasonable price. When we finished I was confident in moving forward with a resolution. He definitely wants to help people take the appropriate course of action for their circumstance.

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Dear Mr Gingold, There are so many reasons to be thankful for all you have done and will do. Anyone who has ever had unfavorable experiences with an attorney or the legal system will feel the trepidation that I experienced once I realized that my situation seemed hopeless. It was by chance and happily good luck that I decided to put my future and sanity into your hands. I was mortified at having to deal with my debts by claiming bankruptcy. I remember in our first meeting how you assured me that I was not alone and should not feel ashamed. And, anyone in this position obviously does not have money to spare and you were clear about all the costs and allowing me to pay according to my own ability to do so. You advised me in all aspects of the law, but also, you were at each meeting incredibly supportive and complementary of my personal and professional plans. Anyone else in this situation should feel blessed to have access to your expertise and support.

Lyla B.

I thought the process of filing bankruptcy was going to be a difficult one. However, Gingold & Gingold treated me with respect and dignity from the moment I walked through their door. I had the pleasure of working with Jamie. She is very responsive, professional, and knowledgeable. She took the time and listened to my every concern and handled each and every one of them to my satisfaction. My experience with filing bankruptcy under Gingold & Gingold's representation exceeded my expectations in a major way. They gave me such a peace of mind. I am very pleased with my decision of going with Gingold & Gingold to represent me when I filed Chapter 13 bankruptcy.

Julie T.

Wow! I am finally out of debt and can say that I am debt free after completing my chapter 7 bankruptcy case with Gingold and Gingold. Mr dangled was very knowledgeable and direct with regard to my debt situation. there were no surprises and the case went as I was advised. The staff was also very helpful whenever I had a question. I will definitely recommend them in the future to my friends.

Sherard W.

I cannot say enough about this law firm. From the initial consultation to our discharge, the entire office kept me updated with every step of the entire process. I came to the Gingold after a bad experience with another law firm. Ira and Jamie immediately began treating me like family through this experience. In the end, they assisted with eliminating many debts including my 2nd mortgage. I cannot say enough about the experience and knowledge that Ira brought to the table from the office visits to the court time. Thank you very much for helping me through this tough time. Thank you.

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