Student loan costs hinder homebuying for 1.5 million young people, OneFamily finds
The Lifetime ISA provider surveyed 2,000 adults aged between 18 and 40 about their financial habits and attitudes.
More than 1.5 million young people said student loan repayments are making it harder to save for a home, according to research from OneFamily.
The Lifetime ISA provider surveyed 2,000 adults aged between 18 and 40 about their financial habits and attitudes.
Among those with a student loan who were saving for a home, 70% said their repayments made it harder to build a property deposit, equivalent to more than 1.5 million people.
Almost a third (29%) of respondents with student debt said it was holding them back from achieving their life goals, while 27% regretted going to university because of the amount they owed.
The research found younger borrowers were particularly affected, with 48% of Gen Z respondents saying their student loan limited their financial options, compared with 29% of Millennials.
Some 40% of Gen Z respondents were worried about their student loan, compared with 26% of Millennials.
Among respondents saving for a home, 99% said they would put at least some of the money towards that goal if their student loan was written off.
Beth Tait, personal finance champion at OneFamily, said: “There are already a huge number of barriers making it challenging for young people to buy their first home.
“Right now, thousands are stuck in a ‘rent and repay’ trap – juggling high costs, as well as their student loans, making it difficult to put aside much at the end of the month.”
Tait added: “It’s worrying to see so many feeling stuck in a cycle that is difficult to break out of.
“There are solutions out there, like the lifetime ISA, to help young people manage their money and reach their life goals. But there is still much more work to do in terms of financial education and resources to help this generation save and build financial resilience.”
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