A new report reveals that recent college graduates who take out loans are leaving on average $34,000 in student debt, and that it's hurting millennials' chances of buying a home.

The Federal Reserve Bank of New York held a press conference on Monday in which President William Dudley and a number of economists examined the relationship between student debt and home ownership.

The average student debt after college graduation is $20,000 higher than it was 10 years ago. For millennials aged 30-to-36, this type of debt is significantly diminishing their chances of purchasing a home. In 2016, homeownership dropped to their lowest rates since 1965 to 62.9 percent.

In addition to running on issues like immigration and trade, Donald Trump tapped into millennials who were either about to attend college or recently graduated. Back in October in Columbus, Ohio, then-candidate Trump announced that he would cap student loan interest rates at 12.5 percent, and after 15 years of making payments, their outstanding loans would be forgiven.

"Students should not be asked to pay more on the debt than they can afford," Trump said. "And the debt should not be an albatross around their necks for the rest of their lives."

Student loans have now surpassed $1.3 trillion, and since 1996, according to the Bureau of Labor Statistics, it's increased 200 percent.

How can any millennial with a college degree purchase a home now where both housing and tuition have increased dramatically?

According to the president's budget proposal, Trump plans to cut the Supplemental Education Opportunity Grant, which allocates funds to colleges for financial aid. This is a good sign.

The New York Fed did a study in 2015 that found that a dollar of subsidized (non-PLUS) student loans increases published tuition by 58 cents at a typical college. Pouring less money into funding student loans could stop the bleeding of rising tuition costs.

Of course, that brings up the issue "how are students going to pay for college with less money?" The preceding question to that, however, is "why are colleges charging that much to educate their students?"

Through this new budget proposal, albeit a drop in the bucket, Trump can apply pressure onto colleges and universities to finally lower tuition.

It's a bold strategy, but it's something that might work.