Older People Still Have Student Loan Debts
Older People Still Have Student Loan Debts
Student loan debt has become a huge problem not only for fresh college graduates but also for the United States. According to a recent report from Barclays, more or less one out of six people with an age of above 50 years old have a student loan debt.
In addition, the report stated that the outstanding student loans in the United States reached more than $1 trillion already. 15.5 percent were made up of Americans with age 50 years and above, and 4.2 percent comprised of Americans with age 60 years and above.
In terms of delinquencies, 17 percent of overdue student loan balances were made up of Americans with age between 50 and 59, and just about 5 percent comprised of those with age 60 years and above.
Furthermore, Barclays reported that between the years 2007 and 2009, student loan debt in retired households went up by 62 percent. There are a variety of causes for this said increase. Although some people are more likely still paying back their student debts for their college education, there are some older people who took on loans in order to go to school once again.
Another cause why post 50s are suffering from debt might be from co-signing loans for their children and grandchildren. Based on a recent study conducted by Ameriprise Financial, 71 percent of parents with age above 50 years old have assisted their children finance their college education.
Debtors who are in their older years and still have outstanding federal student loans might be surprised when they start withdrawing Social Security, because the government can increase those payments to use it those loans.
For the moment, student loans cannot be discharged in bankruptcy except if too much hardship is declared by the borrower. In the year 2008, only 29 of the 72,000 borrowers in bankruptcy were approved for the exemption.
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Filed under: Student Loans
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