Millennials and Those Pesky Student Loans

There’s no denying it, staggering student loan debt is burdening the millennial generation (people aged 20-34). According to, students are graduating from college with more debt now than ever before at an average of $30,000. High student loan debt is a contributing factor in delaying this generation from many milestones, including home ownership.

However, there is a silver lining around all those daunting student loans. According to a recent study conducted by CoreLogic, millennials who have student loan debt, also have a higher credit score compared to those who do not have student loans. It’s time to start putting your education debts to good use!

Why is a credit score important?

A credit score is a number derived from detailed information about credit history, think of it like your reputation as a borrower. This number plays a critical role in your financial future because it helps lenders decide whether or not to approve your loan request and how much to charge. A higher (and better) credit score means attractive rates and the interest you will have to pay each month and for the life of the loan will be lower.

Student loans = higher credit score

Student loans, when paid in full and on time each month will serve as a major asset in building credit scores. Upon sending your payment, the credit bureau makes a record of that on a continuing basis. This will demonstrate to future lenders that you can be trusted to handle money responsibly. Having student loan debt does not affect your ability to access credit.

A home within reach

Don’t let student loan debt scare you away from finding your dream home. Use your debt as an asset to lock-in on low interest rates. Buying a home is more affordable than ever with historically low interest rates, meaning you get more bang for your buck. Gone are the days of needing 20% of the sale price for a down payment, depending on the mortgage program, you can put down as little as 3%.

Most of the first time home buyers we work with are young professionals who are looking in the Minneapolis or the first ring suburbs. These areas are perfect for those looking to be close to work, shopping, the lakes, and all that our vibrant downtown as to offer.

Give The Garatoni Group a call at 612-821-7456 and we’ll walk you through all the steps needed to find your first home.


Alicia Garatoni

Alicia Garatoni