The Key to Reducing Post-Refi Boom Borrower Churn

In this webinar, PRMG Chief Lending Officer Kevin Peranio will help attendees sort through the right technologies as he shares the tech investments that have had the biggest impact on his business.

Tracey Velt breaks down the latest RealTrends 500 rankings

During the episode, Velt highlights which brokerages achieved top rankings in both categories for 2020, and shares what stood out to her the most about the rankings.

Navigating Closing Struggles in 2021’s Purchase Market

Join this webinar to discover the most current information on hybrid and full eNote eClosings and discuss key criteria to successfully implementing your eClosing strategy.

About 7M refi candidates missed the “forever rate” boat

Rates jumped to 3.17% last week and Black Knight reported that there are now just 11.1 million “high quality” refi candidates. The smallest number of potential refi candidates in a year.

Mortgage

Student debt crisis deepens as Gen Z enters college

Nearly 40% unsure if they can pay back debt

[UPDATE: the company mentioned in this article, LendEDU stands accused of fabricating the existence of its primary spokesperson. Said spokesperson was never quoted in any HousingWire coverage and the company stands by its data. Please read more here.]

As the oldest members of Generation Z turn 23 this year, they are now fully into or even past their college years, but the bad news is the student debt crisis is only continuing to worsen.

HousingWire's March issue outlined the long-term consequences [subscription required] of student debt on the housing economy. As it turns out, student debt is taking a much larger toll on the housing economy than previously thought.

But now, as Gen Z steps into the college arena, the crisis is set to deepen. In a study which surveyed 850 current students of a four-year college or university that have student loan debt and are between the ages of 18 and 23, LendEDU, an online marketplace for student loan refinancing, found Gen Z may be less than prepared to deal with their debt after graduation.

The study found a full 39.18% of Gen Z borrowers answered either no or unsure when asked if they would be able to fully repay their student debt. Another 52.94% said they believed they will be helped by federal student loan forgiveness programs, when in reality, less than 10% of borrowers will be aided by forgiveness.

The study also showed Gen Z is lacking in even just a general knowledge of how their student loans function. For example, 60.12% of borrowers thought it was possible to refinance their student loan debt with the federal government, but this program doesn’t exist.

Also, 63.77% of borrowers answered either no or unsure when asked if unsubsidized student loans accrue interest during deferment, 32.24% of borrowers have never looked at their student loan account and 19.76% were not sure if they have private student loans.

The study shows Gen Z borrowers are lacking knowledge when it comes to their student loans, from their interest rate to how long they have to repay it. To see other answers from Gen Z borrowers, click here.

HousingWire magazine subscribers already saw that in March’s magazine story, it shows, in depth, the devastating effects this could have on the housing market, not the least of which involves potential homebuyers postponing buying a home.

Most Popular Articles

Millions will enter housing market in 2021: Zillow

Up to 2.5 million households could enter the housing market in 2021, per Zillow. The buyers will descend on the “secondary cities” across the U.S.

Apr 07, 2021 By

Latest Articles

William Raveis ain’t no stinkin’ iBuyer

Like others, resi brokerage & lender William Raveis is happy to buy your home. But its new program doesn’t mean it’s an iBuyer.

Apr 09, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please