Salient to Investors:

Two-thirds of student loans are held by people under the age of 40, and of those the number who own homes fell by 4.6 percent in Q4 2012, the biggest drop in records back to 1982. Almost a third of borrowers in repayment are 90 days or more overdue on their loans, public and private.

Diane Swonk at Mesirow Financial said student debt has a dramatic impact on ability to buy a house and related purchases, despite owning becoming cheaper than renting in may places.

Michael Lovenheim at Cornell reported in 2011 that $7 billion of equity was cashed out for education at the height of the housing boom in 2006.

JPMorgan Chase said the 9 of 10 people say they want to own their own home. US homeownership fell to 65.4 percent in Q4 2012, the lowest since 1997.

The BLS says a worker with a bachelor’s degree had a median weekly income of $1,066 in 2012 versus $652 for someone with a high school diploma. The unemployment rate for a college graduate was 4.5 percent versus 8.3 percent for only a high school diploma.

Mark Kantrowitz at says you are more likely to die in a car accident than get your student loans discharged in bankruptcy.

Fair Isaac Corp – creator of FICO – said 61 percent of bank risk managers expect student-loan delinquencies to rise over the next six months, and delinquencies on all other types of consumer loans to stay the same or decrease.

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