CSUN On Point

Many Millennials are finding it difficult to gain full independence and purchase homes. Steadily becoming the most prominent demographic of people in America, they have surpassed the Baby Boomer generation by around 8 million, according to the U.S. Census Bureau. Yet Millennials earn 20 percent less than their parents’ generation. Forty-two percent of people age 18-34, according to the Pew Research Center, are living with their parents, which is the highest level since 1940.

“[It’s] the availability of jobs,” said Craig T. Olwert, CSUN Professor of Urban Studies and Planning. “Most of the millennials haven’t found well-paying jobs to help cover the costs [of home ownership]. I think with the recession finally really recovering on the job side, we’re going to see that start changing.”

California Association of Realtors Research Analyst Azad Amir-Ghassemi said the way residences are changing hands is shifting. “We’re going to go into a European model of homeownership,” he said, “where Baby Boomers have their homes, and then they transfer their homes down to their kids.”

Getting a higher education may lower some millennials’ ability to purchase a home. A survey by Amir-Ghassemi found that as many as 25 percent of millennials said that their student loans are keeping them out of home ownership.

The notoriously high cost of living in Southern California only makes matters more challenging.

“The average price of real estate here in Southern California is $472,000,” Sales Manager of Global Premiere Properties Adam Arteaga said. “And to qualify for a home loan like that, you’re looking at an income of almost $90,000.”

That qualification will be difficult for those without good credit. “Usually the banks like to look for a FICO score of about 650 and above,” Arteaga said.

The cost to rent in the Los Angeles area is also becoming not feasible. Research and analysis firm Axiometrics shows the average monthly rate for a one-bedroom apartment in L.A. County is $2,300, and the Inland Empire, it’s over $1,500.

But Arteaga said the situation is looking less dismal than in years prior. “Forty-five percent of all houses sold last year were [to] first-time homebuyers. For what rents are going for right now, you can almost obtain a home mortgage for that.”

Moderator: Noemi Salcedo

Producer: Dana Lites

Anchor: Flor Tolentino

Social Media Editors: Dana Lites and Char’Tre Steward

Reporters: Trevor Edwards, Dana Lites, Cynthia Marin, Noemi Salcedo, Char’Tre Steward and Flor Tolentino

Carrying the weight of thousands of dollars in student loan debt is the new trend these days.

Increasing college and university tuition rates are resulting in higher debt costs for students who have to take out loans. The Experian Credit Bureau news blog reported that 40 million Americans now have one or more outstanding student loans, with balances increasing each year.

The Economist reported that student loan debt has increased to a record breaking $1.2 trillion, up 84 percent since the recession.

“I think that there just has been such a disconnect between the colleges and the loan systems,” Certified Financial Planner Shannah Game said. “The loan systems are run by the federal government, and there is just quite a disconnect between the price increases of colleges, and the student loan system trying to keep up with that.”

The federal government has changed laws on who can borrow and how much. According to Game, colleges and the government are not working together, causing this to be a much bigger problem than needed.

President Obama has signed an executive order called The Student Aid Bill of Rights, highlighting four main ways for getting students access to a better college experience, without the stress of hefty loan debt.

One of them is having enough information to choose an affordable loan repayment plan.

“When students are ready to pay back these loans, let them know what their options are; don’t just say you got to pay and that’s it,” CSUN Financial Aid Counselor Gregorio Alcantar said. “Let them know that, for example, there’s more than ten repayment plans available, so you can guarantee that you will make your payments.”

Entry-level job salaries are not always enough to compensate for the high monthly payments for each loan, and some students will still be unemployed by the time the first payment is due, making it difficult to pay the loans back.

The biggest question is, are students getting the education they pay for? or borrow for, as the case may be?

According to Pierce College Economics professor Dr. Pamela Brown, Americans are living longer and going to school longer. Students should consider college as a first step towards a career and choose their majors wisely, so that they will be making enough money to pay back their student loans as quickly as possible.

“If you pick Irish macramé of the 1820s as your master’s degree, it’s not going to be as affordable to pay back that loan, ” Brown said. “As I tell all my students, if you’re unemployed after college, it may not be the economy that’s the problem, it might be your major.”

Moderator: Cyndy Alvarado

Producer: Evan Mederos

Anchor: AJ Romero

Reporters: Precious Allen, Sharon Shin and Rosanna Siracusa

Social Media Editors: Kelly Hernandez

CSUN’s On Point looks at the challenges facing today’s college graduates: paying off record student loans and finding jobs in a still struggling economy. Guests: Gregorio Alcantar, CSUN Financial Aid and Scholarship Department; Daniel Levitch, CSUN Career Center; Doug Marriott, Los Angeles Valley College Career Center.

Host and Reporter: Emily Davies

Anchor: Bijan Nasseripourtowsi