Years to Save for a 20% Down Payment With Student Loan Debt

Student loan debt has increased by 108% since 2007, hindering a young person's ability to save for a down payment and giving a significant advantage to those who are debt-free. Zoocasa calculated how long it would take a recent graduate earning a starting salary of $64,291 to save for a 20% down payment on a median-priced home in each state depending on if they have or don't have student loan debt.

Calculations assumed a 4.4% personal savings rate based on the U.S. Bureau of Economic Analysis. For those without student loan debt, we calculated how much they might save by redirecting monthly student loan payments toward their down payment to reflect how debt-free individuals have higher disposable incomes. In a high-savings scenario, 100% of the redirected student loan payment was used toward their down payment, in a moderate-savings scenario, 50% of the redirected student loan payment was used toward their down payment, and in a low-savings scenario, 0% of the redirected student loan payment was used toward a down payment.
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