The economy is now officially in a recession, better compensated job prospects for parents are bleak, and the private lenders who offer student loans generally fall into one of two categories: part of the larger kickback scandal or no longer making student loans available. The federal Direct Loan service is still a viable option for most college students and college prospects. Yet as the sources of private student loan financing are drying up, the cost of a college education is increasing. Lewin writes:

Over all, the report found, published college tuition and fees increased 439 percent from 1982 to 2007, adjusted for inflation, while median family income rose 147 percent. Student borrowing has more than doubled in the last decade, and students from lower-income families, on average, get smaller grants from the colleges they attend than students from more affluent families.

That’s a scary number, huh? Tuition and fees have jumped 439% in a matter of twenty-five years while incomes have only grown by 147%. Those who research the student loan industry as well as the affordability of higher education have got to be giving a double take to those numbers. That’s frightening. More from the New York Times article:

Among the poorest families — those with incomes in the lowest 20 percent — the net cost of a year at a public university was 55 percent of median income, up from 39 percent in 1999-2000. At community colleges, long seen as a safety net, that cost was 49 percent of the poorest families’ median income last year, up from 40 percent in 1999-2000.

Even the community college option is becoming more and more out of reach for the poorest families. What incentive does an elementary school student or a high school student in a troubled school district have to achieve greater success if they can’t even afford to continue their education at the community college level?

In New Jersey, we have the New Jersey Student Tuition Assistance Reward Scholarship (NJ STARS) program. The NJ STARS program, more or less, provides a vehicle for high-achieving high school students to attend the local community college for free. If their grades are acceptable while in the program, they can receive a stipend to finish their education at a 4-year institution. It’s a good deal if you think about it. If the program existed when I was graduating high school and moving on to college, I would have jumped on it immediately. That assumes, of course, that I would have known about the program and that I had the benefit of my current hindsight.

If you have the opportunity I suggest taking a few minutes to read the article linked above. In fact, share it with any college-aged people in your family and if you live in New Jersey, be sure to bring the NJ STARS program into the discussion with your high school-aged family members.

New York-White Plains-Wayne, N.Y.-N.J., was the nation’s least affordable major housing market for the second consecutive quarter. In the New York market, 10.6 percent of the new and existing homes sold during the third quarter were affordable to those earning the area’s median family income of $63,000.

You get that, folks? If you live up in the Wayne area of New Jersey then only 10% of the homes being sold are affordable for those making $63,000. In other words, you need to make $63,000 per year in order to afford only 10% of the homes that are currently for sale in this part of the real estate market. I have a sneaking suspicion that this data holds true the further west and south that you go in New Jersey at least through western Morris County and northern Ocean County.

What’s the end result of this mess? Simply enough – it’s the continued existence of a large inventory of homes for sale on the market throughout most of New Jersey. The sellers are a varied bunch. Yes, you have some greedy people who refuse to sell their real estate without making an exorbitant return for this market (15% – 24% above their purchase price). My landlord is a great example of this greed. A townhouse in the same development as I currently live in is on the market for $250,000. It’s the same exact three bedroom, two and a half bath townhouse that I currently live in, just down the street. Yet my landlord is only willing to sell the place that I currently live in for $315,000. No budging on that price, either (believe me, I tried). Greed like this is destroying the real estate market in New Jersey.

Yet on the other hand there are a lot of people who are in over their heads and are now stuck with mortgages that exceed the market value of their home. These folks could not be expected to sell their real estate without covering their existing debt, but at the same time a buyer cannot be expected to purchase a piece of real estate for more than its market value. What are strapped sellers and eager buyers to do?

Most realtors are still harping on their mantra of their industry – “Now is the time to buy.” You’ll hear this from most realtors no matter what the market conditions. One great thing about the New Jersey Real Estate Report is that they provide comparison busters for their readers. In other words, your realtor will provide you with comparisons to show why the price on a home is in line with the market. It is, of course, in their best interests to show you comparisons that are generally in line with what the seller is asking (higher is better). Why is higher better? Simple – the higher the home price then, usually, the higher the commission the realtor makes on the deal.

If you’re out there looking for a new home, I’d suggest checking out the New Jersey Real Estate Report so you can at least get the truth about the market where you are shopping.

In the mean time, check out Jersey City Locksmith for the best locksmith service in the Garden State!