Bohemia, NY (PRWEB) April 15, 2013
On April 15, Rapid Recovery Solution responds to reports that the nation's mounting student loan debt is stifling the housing market.
According to a recent article from NBC News, the current generation of recent college graduates collectively owe more than $1 trillion, which may indefinitely stymie their hopes of buying a home. The Consumer Financial Protection Bureau says that this represents a doubling of the 2007 amount and is greater than any other category of consumer debt which isn't tied to a mortgage.
“Total student loan balances nearly tripled between 2004 and 2012, according to a new survey from the Federal Reserve Bank of New York. Now $1 trillion in collective student loan debt is directly affecting the housing recovery.”
Under normal circumstances, first-timers typically make up almost half of the home-buying population, according to the article – but their share “has hovered at or below 30 percent” during the economic recovery, reports the National Association of Realtors.
“Adding to the burden is the fact that one-third of student loan borrowers are delinquent on their debts, according to the Federal Reserve report. That directly affects their credit rating and, in today's strict credit environment, will keep them out of the mortgage market for years to come.”
John Monderine, CEO of the collection services agency, Rapid Recovery Solution, offers his comments on the student loan crisis. “I just spoke recently about the debt treadmill for young people entering the job market. Many young people entering college – as well as their parents – still think that the degree will function as a kind of easy socio-economic capital to help them step into a career when they graduate, and that they’ll be able to buy a home in a reasonable amount of time. It’s just not the case. Not every young person in America is going to be able to afford a home – and we haven’t got the room for that anyway. These are increasingly seen as 20th-century aspirations that don’t apply to the circumstances that modern grads are finding themselves in.”
Founded in 2006, Rapid Recovery Solution, Inc. is headquartered at the highest point of beautiful Long Island. Rapid Recovery Collection Agency is committed to recovering your funds. We believe that every debtor has the ability to pay if motivated correctly. We do not alienate the debtors; we attempt to align with them and offer a number of ways to resolve not only your debt but also all their debts.