Student debt may hurt housing recovery…

Student debt may hurt housing recovery…

Student debt may hurt housing recovery…

http://www.washingtonpost.com/business/economy/student-debt-may-hurt-housing-recovery-by-hampering-first-time-buyers

My initial reaction to this story was but a simple “Yep”.  I mean, I don’t necessarily see anything profound or earth-shattering about news that student loan debt might hurt those bearing said debt- or any other debt for that matter.  Money going out the door towards anything inherently leaves less money to pay for other wants, needs and/or responsibilities.

A bit more thought got me riled up a bit, in that I really don’t care for where this story in particular and the student loan debt argument in general is headed.  Got medical bills?  Yep, they could zap your savings and hurt your chances of getting a house right away.  Bought more car than you can afford?  Bingo- another obligation that could stunt one’s path to homeownership.

And I call that….life.

I’ve seen a number of credit reports over the past 13 years or so I’ve spent in the property management business- upwards of 3,000 to be sure, possibly 4,000.  I’ve seen one from a practicing attorney who was fully capable of passing the bar and earning a great living, yet she’d never made a payment toward a loan in her life.  The $200,000 she owed mirrored another one I recall from a nursing school grad who’d never seen fit to meet an obligation.

Despite whatever harm may come to “the housing recovery” that can be directly attributed to student loan debt, I pray students like the ones pictured above will be taught an important lesson:  if you obligate yourself to pay something, you have to pay it or suffer the consequences.

Or more simply put- don’t take the loan if you don’t plan on paying it back.  The well-worn path of “defer, defer, defer…default” needs to come to an end- and we must hold these students responsible for their debts versus looking for ways to relieve them of their responsibilities.

I hope I don’t have to write a ton of posts like this, but I have a funny feeling others will follow- and when “Auto loan debt may hurt housing recovery”, “Insurance debt may hurt housing recovery” and “Colorado marijuana debts may hurt housing recovery” come along, I’ll be back.

Paraphrasing the note from the college graduate above, when we incur debts, we’re “saposed” to pay ’em.  And how might a government which ponders the blanket nullification of student loan debt look?  A bit of a clue can be gleaned from connecting the dots in the sign above- and following the student loan debt protesters’ trail straight to the Party for Socialism and Liberation.

Student debt may hurt housing recovery…

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About Dennis Burgess

Dennis B. Burgess Realtor in Orlando, FL ORRA Vice-chairman of Strategic Planning/Secretary ORRA/FR Boards of Directors Empire Network Realty 6000 S. Rio Grande Ave., #104 Orlando, FL 32803 Cell: 205-445-4755 Office: 407-440-3798 bamaburgess@hotmail.com Twitter: @orlrentals Turning vacant into occupied, and "houses" into "homes"
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