Inside Higher Ed on August 16, 2012

People with student loans to repay, on average, might not qualify for mortgages because they have too much debt, according to a report  the advocacy group Young Invincibles released Tuesday. The group said that the average single debtor, with consumer debt, student loans and a mortgage, would have a debt-to-income ratio of nearly 50 percent — too high to qualify for many mortgages. The report, which used average credit card payment minimums, average student loan payments and a range of household incomes, found that student debtors making the median salary for college graduates could have trouble getting a mortgage.

“At least for a time, they can be completely cut out of the market,” the group wrote, warning of the economic consequences of such a barrier.