Many boomer homeowners have significant student loan debt, impacting their ability to purchase homes.

From Yahoo Finance: 2025-05-19 11:01:00

A recent report shows that 9% of younger boomer homeowners have student loan debt, with a median amount of $34,400. One-third still owe $75,000 or more, the highest among all age groups. On the other hand, only 4% of older boomers have student loan debt, mostly between $25,000 and $49,999.

Many individuals find student loan debt to be a barrier to homeownership, with some delaying purchasing a home due to college or grad school debt. 6% of people aged 59-68 believe saving for a down payment or a home is challenging due to outstanding student loan debt, according to a survey.

A study revealed that 72% of people with student debt who are not homeowners feel their debt will hinder the purchase of a home. Homeownership among recent college grads has dropped 1.8% for every $1,000 of student loan debt since 2005, impacting financial security and debt-to-income ratios.

Despite the financial strain of student loan debt, a college degree still holds value. The median earnings of a bachelor’s degree holder are nearly 60% higher than a high school graduate. Higher wages over time can help pay off debt and improve long-term financial stability, even with student loans.

Efforts are being made to address the impact of student loan debt on homeownership. Representative Marcy Kaptur introduced a bill in 2022 to help creditworthy borrowers with federal student loan debt purchase foreclosed homes. The proposed program aims to assist millions of Americans in buying vacant homes to reduce student loan debt and promote homeownership.

Read more: Is College Worth It? Here’s How Much Student Debt Boomer Homeowners Have