Young college graduates, including those who are still paying off student loans, are more likely to buy a home than their peers who did not go to college, according to a report from Navient and Ipsos.
The findings show the mortgage, marriage and child rates for two groups of consumers, those ages 25-30 and 31-35, by educational attainment and for student loan borrowers and non-borrowers, according to Navient.
Thirty-eight percent of 25-30 year olds and 50% of 31-35 year olds who borrowed to earn a bachelor’s degree or higher have a mortgage, while 22% of 25-30 year-olds and 39% of 31-35 year olds have a mortgage but no student loans, according to the findings from the Money Under 35 study, which gauges the financial health of consumers and the impact of debt, savings and other factors.
The study was released in December with updates this week showing the connection between borrowing for college and consumers’ other financial and life decisions. More than 3,000 adults ages 22 to 35 were surveyed.
Sixteen percent of 25-30 year olds and 31-35 year olds who still have college debt but did not complete their degree also have a mortgage, according to the study. Twenty-two percent of 25-30 year olds and 41% of 31-35 year olds who did not complete their degree but do not have any student loan debt have a mortgage, according to the study.
The report finds that consumers who borrow for their education, and have student loan debt but do not complete a degree, delay taking out a home loan and are more likely to struggle financially.The percentages of borrowers in both age groups with a mortgage who did earn their degree, even if they still have student loan debt, increases. Twenty-five percent of 25-30 year olds and 26% of 31-35 year olds with an associate’s degree and student loan debt to pay also have a mortgage, according to Navient. Thirty-five percent and 55% for each age group, respectively, with a bachelor’s degree or higher and student loan debt have a mortgage.