The Relationship Between Degree Attainment and Mortgages

on May 4, 2016

Navient, a leading student loan servicer, issued a Money Under 35 report that looks at the impact of student loans on buying a home, getting married and having children. The survey found that college graduates are more likely to buy a home than people who did not go to college. However, the survey found that people who have the debt but not a degree are more likely to struggle financially. This is consistent with other studies that find that borrowers who drop out of college are four times more likely to default on their student loans than borrowers who graduate. Thus, the student loan problem is more accurately described as a degree attainment problem.

Key findings from the report include:

  • 83 percent of young Americans with a college degree are employed, compared with 63 percent of those without a degree.
  • College graduates who borrowed to pay for college are more likely to have a mortgage than college graduates who did not borrow to pay for college.
  • Among Bachelor’s degree recipients age 25-30, 38 percent of those who borrowed to pay for college have a mortgage, compared with 22 percent of those who did not borrow to pay for college. For Associate’s degree recipients, the figures are 30 percent and 21 percent, respectively.
  • Overall, 25 percent of Associate’s degree recipients who borrowed to pay for college have a mortgage compared with 20 percent of non-borrowers, 35 percent of Bachelor’s degree recipients who borrowed to pay for college have a mortgage compared with 24 percent of non-borrowers, and 45 percent of recipients of advanced degrees who borrowed to pay for college have a mortgage compared with 37 percent of non-borrowers.
  • College graduates are more likely to have a mortgage than people who dropped out of college (including those who borrowed to pay for college) and people who did not go to college.
  • Among people who borrowed to pay for college, 38 percent of Bachelor’s degree recipients and 30 percent of Associate’s degree recipients, age 25-30, have mortgages, compared with 14 percent of people who did not graduate and 16 percent of people who did not go to college.
  • The likelihood of having a mortgage increases with age, not just educational attainment. For Bachelor’s degree recipients who borrowed to pay for college, 50 percent of 31-35 year-olds have a mortgage compared with 38 percent of 25-30 year-olds. Among Bachelor’s degree recipients who did not borrow to pay for college, the figures are 39 percent and 22 percent, respectively.

Ipsos surveyed more than 3,000 Americans aged 22 to 35 on behalf of Navient.

Pay

Can I get Into...

We Know Your Chances. Do You?

What Are My Chances