It’s a Good Time to Trade Your Student Debt for Home Debt
Fannie Mae, the government-controlled mortgage giant, is taking steps to make it easier for millions of student loan borrowers to own a home or refinance a mortgage. Student debt has become an increasing concern, amid worries that borrowers burdened by education loans are postponing home buying , causing a drag on the economy. The average undergraduate now leaves college with more than $30,000 in student debt, according to the Institute for College Access and Success.
Fannie Mae, which buys home loans originated by lenders that meet its standards, said Tuesday that it was easing the path for student loan borrowers — and those who may have co-signed such loans — in three ways, said Jonathan Lawless, vice president for customer solutions at Fannie Mae.