Student debt (again)

by reestheskin on 24/07/2017

Comments are disabled

This (via the Intercept) is from the US, but….

”IN MAY, A MELBOURNE-BASED real estate mogul’s claim that millennials would be able to afford homes if only they cut back on discretionary expenses such as avocado toast went viral — with many heaping mockery on the suggestion. Now the Federal Reserve has its own hot take to throw on the pile. Except this one is based on empirical research. In a paper published last week by the Federal Reserve Bank of New York, five researchers offered an explanation for declining home ownership rates among millennials that does not require avocado toast. Looking at nine student cohorts, they concluded that the increase in public tuition and resulting student debt can account for anywhere between 11 and 35 percent of the decline in home ownership for 28- to 30-year-olds in the years between 2007 and 2015.”