By Nyesha Stone
It’s no surprise that Milwaukee is on yet another list that we don’t want to be on. A study commissioned by MagnifyMoney, found that 7.06 percent of Milwaukee residents owe more on their student loans than their mortgages, which places them a 13 on the list of cities with more student loans than mortgages.
Milwaukee suffers from many disparities and over-pricing our higher education is becoming an even bigger issue in the city.
The lead research expert on the study Kali McFadden said the editorial team came up with the idea for the study. She said a mortgage is usually the biggest loan (debt), Americans think of that they’ll ever take out in their lifetime. Well, student loans will soon be replacing that debt, according to the study.
McFadden said student loans are inhibiting the life of young people and adults who take out loans to pay for their children’s education.
“What’s going to happen to individuals who took out $30,000 for their children?” she asked. “[But,] people who are the most hit are people who’ve taken on a debt and don’t finish [school].”
When asked what members of the community could do, she stated that engaged alumni could look into how their alma maters are spending tuition money, among a list of other things.
This issue affects everyone in a variety of ways she said. She used an example of an older individual who wants to sell their home eventually. If a young person is so bogged down in tuition debt, they won’t be able to pay for a mortgage later down the line. Also, if too many people are too encumbered by student loans to buy a home, that could have an effect on the market for people who want to sell their homes.
If Milwaukee is always going to be on someone’s list for something than it should be for something worthwhile.
McFadden said it’s the small things that can make a difference to a student dealing with extreme debt, such as providing rides, helping with the process of attaining scholarships/grants, amongst other things.
To find out more information about the study and how it was conducted visit https://www.magnifymoney.com/blog/news/student-loans-vs-mortgages-weigh-heaviest/
