Housing rebound depends on more young people forming households and paying off student debt which aren't happening

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3/10/12, "Number of the Week: Most Borrowers Not Paying Down Student Loans," Wall St. Journal, Economics, Phil Izzo

"39%: The percentage of student loan borrowers who were paying down their balances in the third quarter of 2011.

Student loan debt is surging in the U.S. — hitting $867 billion at the end of 2011, more than credit card debt or car loans — but most borrowers aren’t paying down the balances....

The biggest problem is faced by the borrowers themselves, and ironically could most affect the housing industry. A rebound in the market has to come in part from more young people forming households.

• But low wages, a tough job market and large debt

• aren’t exactly the recipe for a healthy head of household."

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