Senior Borrowers Still Paying Off Student Loans in Retirement
If you are a younger borrower, chances are you are not expecting to still be paying off that debt once you are a senior. Loan servicers certainly aren’t going to let you drag payments out that long, but there is the chance that you may take on more loans later, going back for another undergraduate degree, a special certification, or a graduate degree. Unfortunately, there are far too many borrowers out there also who are working extra hours or even extra jobs just topay off their student loans.
No matter your age, you may be surprised to hear that millions of student loan borrowers are seniors, and they are dealing with paying off debts that are constricting them in retirement. While most of us envision the golden years as a time of relaxing, playing golf in warm weather, taking leisurely walks, and enjoying the grandkids, for many is it is a time of dark financial stress. Money is finite for many, living on a ‘set income’ and without much potential for starting another career at an advanced age. But even for those at the height of their careers with a good income rolling in every month, making the student loan payment can be stressful.
Some seniors (as well as borrowers of any age) may be driven into bankruptcy due to medical bills and/or student loans. Recent news states that there are 2.8 million seniors in the US who are in student loan debt. That number has quadrupled since 2005. And although 20- to 30-somethings are having challenges, their potential is much greater over the next decades for growing in their careers and getting out of debt. Seniors may become depressed both emotionally and financially—along with feeling helpless in what can be a very serious predicament.
“It means that already stretched sources of income like Social Security and retirement savings have to be stretched further,” said Geoffrey T. Sanzenbacher, associate director of research at the Center for Retirement Research at Boston College.
Like younger graduates who may be hustling to pay the monthly bill to their loan servicer, seniors may not be able to afford to stop working if they still have a job and don’t want to go into a default and risk private student loan servicers suing them.
“It eats away at what folks are able to have for their basic necessities,” says Persis Yu, the director of the Student Loan Borrower Assistance Project at the National Consumer Law Center.. Have you experienced problems with your loan service provider or student loan program, or are you in danger of defaulting on your student loan? Contact Fitzgerald & Campbell, APLC now so one of our experienced student loan debt attorneys can review your case and discuss all the available options with you. Our attorneys have decades of experience in serving clients as they navigate through challenging financial situations, to include student loan issues, bankruptcy and other debt management processes. We are here to help! Call us today for a free consultation at (855) 709-5788 or email us at email@example.com.
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