$1tn student debt crisis crushes home-buying dream (BBC)

[eppur_se_muova]

By Beth McLeod
BBC News, Philadephia

Student debt has risen dramatically in recent years, leaving many college graduates unable to buy their first homes. That has analysts worried about the future of the US economy.

There are plenty of "For Sale" signs in the Philadelphia suburb where Michael Nealis lives with his wife, Jessica. They dream of owning a home and on learning they were expecting their first child, they approached a mortgage adviser.

"We were told immediately that no mortgage company would touch me with the amount of student loan debt that I have," Mr Nealis says.

He studied for an undergraduate degree for four years and owes $64,000 (£38,138) in student loans. He is now a science teacher and Jessica works as a special needs assistant in a school.

'Beyond frustrating'

But with stricter rules for mortgage lenders now in place following the sub-prime debt crisis, their debt-to-income ratio disqualifies them from a loan.
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more: http://www.bbc.com/news/world-us-canada-26893131

[pscot]

1. Borrowing $64K for college

seems like a very bad idea.

[eppur_se_muova]

2. They could always borrow the money from their parents.

Thank Mitt Rmoney for that suggestion.

[blkmusclmachine]

3. ,

,

[bossy22]

4. Shit...only 64K disqualifies somebody

my fiance has over 200K....makes me very very nervous