United States
December 2022
US Market Report

Biden’s student loan forgiveness: update for property managers

Go back to blogs page
Back

President Biden’s student loan forgiveness program is currently in limbo as the Supreme Court deliberates on its legality.

Biden student debt relief program

The Biden administration’s student debt relief initiative was met with legal challenges as soon as it was announced in August. There have been at least six lawsuits filed against the proposal, each opposing its alleged unlawfulness and estimated cost of $400 billion.

If the program is allowed to go forward, the US Department of Education would cancel up to $10,000 in federal student loan debt for millions of eligible borrowers – up to $20,000 if they received a Pell Grant.

In its favor, the argument goes, the money saved on student loan repayments could help low- to middle-income Millennials afford bigger rentals or a future home.

But legal experts predict that the Supreme Court will strike down the program due to an alleged “violation of the separation of powers.” The court will hear oral arguments in two cases in February and a ruling is anticipated in June.

Student housing shortage

Even if the Supreme Court blocks Biden’s student loan forgiveness program, undergraduates in debt will still need a place to live, and they’re looking for single-family rentals amid an ongoing on-campus housing shortage.

Universities have been unable to accommodate unprecedented numbers of new students this academic year. As a result, the student housing market has performed exceedingly well overall and could even break records by the end of the fourth quarter. Real estate investment experts “feel the tailwinds for student housing” and “project a similar story for 2024-2025.”

By making wise investments to meet this pent-up demand for off-campus single-family rentals, property managers could profit from high student rentals regardless of the Supreme Court's decision. As for students finding themselves between a rock and a hard place, a common solution is to split the rent with one or more roommates. This allows each person to save money by sharing expenses, making it easier for the household to pay rent in full and on time and still have enough left in the budget for the full college experience.

More student housing headlines

Growing demand and construction costs lead universities to get creative – Yield PRO

Student housing players make big push into build-to-rent market – REBusinessOnline

Seniors and college students find benefits in being roommates – The Washington Post

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Subscribe
Subscribe to our blog and we will keep you informed of new market reports, blog posts, product and industry news

Interested in hearing more about their stories? Here are a few more of our client videos.

Carrie Alliston, Hunters
Ximena Davidson, East Vista Management
David Summerton, Harcourts Summerton
Dave Votta, Votta Sales & Lettings
Pascual Candia, Venecan Property Management
Chris Lesky, PADRentals
Robert Budd, New Forest Rentals
Mark Shanta, Shanta Residential
Paul Stevens, Just Property
Ellie Bell-Jenks, Dourish & Day
Shannon Lesky, PADRentals
Charlie Green, Hunters

You might also like