Press Release (ePRNews.com) - EMERYVILLE, Calif. - Sep 05, 2018 - Are tiny homes a fad or are they here to stay? One way to understand the popularity of these small, mobile residences is to understand some reasons that they are gaining in popularity. This article claims that the number one reason millennials are buying tiny homes is their student loan debt. The burden of that debt makes it a challenge for many millennials to make ends meet. Even for those who manage to save enough for a down payment on a traditional house, the cost of huge monthly student loan payments makes paying even more on huge mortgage payments a fantasy. The comparatively low cost of a tiny home allows millennials struggling with student loan debt to secure housing and stabilize their financial circumstances. American Financial Benefits Center (AFBC) is a document preparation company that assists borrowers in applying for and maintaining enrollment in federal programs such as income-driven repayment plans (IDRs).
“With the high cost of housing, especially in large metropolitan areas where millennials are moving, it’s not surprising that so many millennials are choosing tiny homes,” said Sara Molina, manager at AFBC. “IDRs might be another way for those struggling with student loan debt to possibly ease some of the financial strain of high monthly student loan payments.”
Aside from lessening the burden of student loan debt, tiny homes are an attractive option for millennials for many reasons. For example, the housing meltdown of the Great Recession seems to have made millennials more cautious than their predecessors to being tied to a large financial investment in real estate. Tiny homes are seen as a lower-risk investment and a hedge against a nosedive in the housing market. A tiny home doesn’t drain savings the way a traditional house does. Also, tiny homes reduce building materials and energy consumed, minimizing the negative impact on the environment and an owner’s monthly maintenance costs. Since millennials desire the freedom to move to another state or region to take a new job or go to graduate school, tiny homes provide millennials the mobility they need. Tiny homes offer the opportunity to live with less so that one can concentrate more resources into areas of their lives that they are passionate about or that need the extra resources.
With the high cost of housing, especially in large metropolitan areas where millennials are moving, it’s not surprising that so many millennials are choosing tiny homes.
IDRs, alternative repayment options for federal student loan borrowers, are another way to focus resources into other important areas. IDR payments are calculated based on discretionary income and can potentially end in forgiveness after 20 to 25 years in the program.
“Tiny homes might be an efficient solution that addresses many issues facing millennials, especially student loan debt,” said Molina. “We hope that our clients take advantage of any monthly payment reduction they may have received in an IDR to improve their financial circumstances and pursue their passions.”
About American Financial Benefits Center
American Financial Benefits Center is a document preparation company that helps clients apply for federal student loan repayment plans that fit their personal financial and student loan situation. Through its strict customer service guidelines, the company strives for the highest levels of honesty and integrity.
Each AFBC telephone representative has received the Certified Student Loan Professional certification through the International Association of Professional Debt Arbitrators (IAPDA).
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