Student Loan Debt is Having a Serious Effect on Boomers
Like tens of other millions of borrowers in the US, you may have been forced to take out a mixture of student loans just to get by; and while you may have been fortunate enough to receive a grant or a scholarship, that may also have been fortified with a federal loan and a private student loan. Because college tuition is so high today, many students (some who are not even out of their teens yet) must put together the proper amount of funding in a piecemeal fashion, pulling together every penny possible. This may also include receiving financial assistance from parents.
As one of the baby boomer generation (usually thought of as being born between 1944 and 1964), you may be concerned about your own student debt load as well as carrying other debt for an adult child. And while this may not have been how you expected to spend your hard-earned funds in middle age and retirement, everyone’s got to go to school—and school just continues to grow more and more expensive.
There is a lot of talk about how millennials are coping with their debt load (or not), and especially when it comes to student loans. Recent news shows that while all individuals over the age of 18 have the potential to be negatively affected by student loan debt, baby boomers are feeling the crunch as they begin edging out of the work force and into their golden years. Data shows that over half of parents today contribute to their older children’s tuition, while 20 percent of parents pay for ‘half or most.’ This may cause a heavy burden for the over-50 crowd who is already paying into around $250 billion of the cumulative $1.6 trillion owed in the US by student loan borrowers.
An MIT AgeLab mixed-methods study showed that many parents who take on student loans (often like younger borrowers themselves) are not aware of the financial struggles they may face later in trying to pay back such large sums.
“Some parents and grandparents in the study said that it took years to discover that the debt was too much for them to handle, and that their retirement plans would be jeopardized,” said MIT AgeLab’s Lexi Balmuth.
The bottom line seems to be that many student loan borrowers are quite unaware of the extreme financial stress they may find themselves in later.
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! Click here to schedule a free 30-minute consultation, call us at (855) 709-5788, or email us at email@example.com.
Posted in: Student Loan Debt