The following eye-opening article from the Huffington Post came as a shock to many Americans. The article discloses that many USA citizens aged 60 years or older owe $36.5 billion in student loans! There are around 2 million seniors in the United States that make up 4.2 per cent of all student debt and many of them are defaulting.
In many cases this means the United States government has been floating many low-interest student loans for up to 40 years! Some seniors proclaim that it is not fair that they have to pay back their student loans late in life because it will cut into their fixed social security payments AND they might have to move out of their cushy home and into an apartment in a seedy part of town. I realize that we all get killed by expensive medical bills that are so hard to read that you do not even know if you are getting ripped off or not! However, we are all in the same boat and your bills are still YOUR bills.
Too bad Grandpa……. if you owe money then you may have to give up your comfortable lifestyle in order to pay back Uncle Sam.
Student loans can be a lifelong burden on the government and economy because people who declare bankruptcy cannot get student loan debt forgiven unless they can prove that their student loans are an “undue hardship.” As a result, seniors can lose much of their fixed Social Security income to student loan payments. Many seniors are barely getting by, debt aside. Nearly half of all Baby Boomers are at risk of having to downgrade their living standards after retirement, according to the Center for Retirement Research at Boston College. There are a number of reasons why seniors may still carry student loan debt. While some are still paying off debt they took on in their 20s, others have returned to school. They also may take on more debt by co-signing student loans for their children or grandchildren, according to The Washington Post. Because of the tough economy, Baby Boomers have flocked back to school in large numbers to upgrade their job skills.
Incidentally , the total U.S. student loan debt now tops $1 trillion, exceeding credit card debt as the largest source of unsecured consumer debt in the U.S., according to the Consumer Financial Protection Bureau.