No Degree Plus Student Loans Makes Homeownership Less Likely

Those with student loan debt but no college degree are less likely to own a home relative to a debt-free high school graduate, according to analysis from Fannie Mae.

Student loan holders that don't have a college degree are 32% less likely to own a home than their counterparts who have a high school diploma and no student loans, Fannie Mae reported Thursday.

There was another big takeaway from Fannie Mae's analysis: having a degree helps.

Student loan holders with a bachelor's degree are 27% more likely to be a homeowner than high school graduates without student loans. And people who are debt-free but have a bachelor's degree in hand are 43% more likely to be homeowners than their peers who just have a high school diploma.

Fannie Mae also found that student loan debt affects renters' aspirations to own a home. Those with student loan debt are 28% less likely to buy on their next move and 7% less likely to buy a home eventually.

For reprint and licensing requests for this article, click here.
Originations Real estate GSEs
MORE FROM NATIONAL MORTGAGE NEWS