Student Loan Debt Afflicts America’s Elderly
Are consumers less burdened by student loan debt as they grow older? It would make a lot of sense to assume that most of us have paid off our student loans by the time we retire. However, it turns out that many seniors across the country, including in the Chicago area, are severely burdened with student loan payments. Can we do anything to avoid this burden during retirement years?
The Senate Aging Committee recently heard testimony about the relationship between older Americans and student loan debt. And according to an article republished by the National Association of Consumer Bankruptcy Attorneys, “a growing percentage of aging Americans struggle to pay back their student debt,” while “tens of thousands of them even see their Social Security benefits garnished when they cannot do so.” And it’s difficult, although not impossible, to erase student loan debt through bankruptcy.
Who’s at Greatest Risk of Having Student Loan Debt in Retirement Years?
Are some Americans at greater risk than others of having to contend with steep student loan payments when they’re in their mid-60s and older? Many different factors can contribute to lingering student loan debt in old age.
For example, Rosemary Anderson, who testified before the Senate Aging Committee, has dealt with a number of financial setbacks in recent years. She went through a divorce, she dealt with significant health problems, and she faced the financial consequences of an underwater home mortgage. Anderson is only 57 years old, but she indicated that she “could be 81 by the time she pays off her student loans.” And what will happen if she fails to make payments in the intervening years? It’s likely that her Social Security benefits with “be docked to make the payments.”
In other words, adults who have faced any type of financial setback—from unexpected medical bills, to the loss of a job, to the inability to make monthly mortgage payments—may have to worry about student loans payments later in life.
In 2010, about 4 percent of Americans between the ages of 65-74 had federal student loan debt. That number represented an increase from 2004, according to a report from the Government Accountability Office, in which only 3 percent of Americans carried debt from student loans. And it’s not just the percentage of people with student loan debt that rose. The amount of the debt grew, too—from about $2.8 billion in 2005 to approximately $18.2 billion by 2013. And when we look at Americans in all age groups, the total student loan debt in the country is about $1 trillion.
Student Loan Debt Affects Americans Years After School Ends
What’s the takeaway here? Student loan debt isn’t just a problem for young people or for those just graduating from school. “Increasingly,” says Senator Bill Nelson of Florida, “that’s not the case.”
In Anderson’s case, for example, she went back to graduate school to try to earn a higher salary. A number of older Americans with loan debt are in the same situation: they thought they’d earn more with a graduate degree, but now they’re unable to pay back the loans that are ballooning over the years.
If you’re struggling to pay bills and have questions about your rights as a consumer, it’s never too soon to speak with a dedicating Oak Park consumer protection lawyer. Contact the Emerson Law Firm to learn more about our services.
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