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“Retire???–I’m still paying student loans………” July 27, 2015

Posted by forwardfinancialplanning1 in Education Planning.
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Some sobering statistics from the New York Federal Reserve–student loan balances of borrowers aged 50 and older made up 17% of the nearly $1.2 trillion of outstanding student loan debt in this country. This $204 billion in outstanding debt came both from co-signed loans for younger student borrowers and those who took loans for themselves later in life.  The fastest growth has been from borrowers aged 60 and older as these balances have increased nine-fold since 2004.

Outstanding loan balances can have ramifications for many years down the road.  Between 2002 and 2013, the number of borrowers whose Social Security payments were offset to pay outstanding student loans increased five-fold from 31,000 to 155,000.  Among those 65 and older, this figure increased from 6,000 to about 36,000 over this same period.  At some point, people have to ask themselves, “Was this loan really worth it?” and “Did it increase my earning power enough to justify taking on this debt so late in life”.  The schools which benefitted probably don’t want it to be known, but increasingly, the answer is looking like “no”.

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