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Research debunks notion that debt-laden grads won't be buying homes

Research debunks notion that debt-laden grads won't be buying homes

Is college debt truly keeping a generation of young adults from buying homes?

That's been the popular storyline as people in their 20s have shunned the housing market since the housing crash. Economists seeking explanations for a change in behavior, and worried about a long-term drag on the economy, have theorized that the slowdown was due largely to a record level of student loan debt in the country — about $1.3 trillion. The narrative: Struggling recent college graduates can't buy homes and will continue to be deterred from buying because they are shackled with immense college loans.

But Susan Dynarski, a University of Michigan economics professor and fellow of the...

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