Student loan impact on auto loans may be overblown
Even as student loan amounts are rising, young people with student loans have no more trouble getting an auto loan than their contemporaries without student loans. That conclusion from a new study by TransUnion knocks down the myth that one reason young people arenêt buying cars is that their student loan debt stops them from getting auto loans.
Our study demonstrates that consumers in their 20s with student loans in repayment that is, once they finish school are in fact able to access credit at levels similar to or better than their peers who do not have student loans, said Steve Chaouki, executive vice president and head of TransUnionês financial services business unit.
The study found that consumers aged 18 to 29 who were repaying a student loan had a higher repayment rate on other loans than their peers without a student loan.
Young people repaying student loans makes up an increasing portion of young consumers: The percentage of consumers aged 20 to 29 with a student loan has skyrocketed from 32 percent in 2005 to 52 percent at the end of 2014. The study looked at the years 2005, 2009 and 2012.Download Bulletin PDF