Student loan debt is the main culprit hampering the housing recovery, says Rohit Chopra, the student loan ombudsman for the Consumer Financial Protection Bureau. 

"We are already seeing signs of economic drag from student loan debt," Chopra says. "The impact on the housing market is the most troubling part."

Student loan interest rates typically are at 8 percent or above, Chopra says. An estimated 7 million borrowers with student loans are in default, he adds.

"The fact is student indebtedness impacts the credit profile of first-time home buyers," Chopra says."Three-fourths of the fall in household formation can be directly correlated to student debt."

The CFPB will be serving as the new regulator that will oversee student loan servicing and lending. Chopra says the agency plans to address the issue of high student loan debt. 

Source: Housing Wire