Student Loan Borrowers can be any age.
You might think, well, college age, would be,
Yet I have seen multiple folks who incurred tens,
even hundreds of thousands of dollars, in student
loan debt, in their 50s or even older.
They are not smiling like the guy in the picture, who just paid off his student loans. They are his age when they start borrowing.
OK, usually co-signing for a younger relative. But still, why is the government making these loans to people with virtually no time left in the work force to earn the money to repay the student loan debt?
Senior Student Loan Borrowers
Ann Carnns reports in the New York Times:
Americans age 60 and older are the fastest-growing group of student loan borrowers, according to a new report from the Consumer Financial Protection Bureau that examines borrower complaints. There are now about 2.8 million Americans who are 60 or older with at least one student loan.
I have a client now who, at age 62, has over $200,000 in student loan debt.
And she has custody of 3 grandchildren under the age of five, so can only work part-time.
Even if she could go full time, where would she make enough money to repay those student loans?
Like every category of student loan debt, the total amounts are rising. More senior student loan borrowers owing more student loan debt, per borrower.
And, it follows, more senior student loan borrowers are in default.
Delinquencies are rising, and nearly 40 percent of federal student loan borrowers who are 65 and older were in default in 2015.
What about the Government student loan debt repayment programs?
Current student loan debt repayment programs are not working, as you can see, especially not for senior student loan borrowers.
As Bloomberg reports:
More than 1 million Americans annually default on their government-owned student debt, data show, despite the widespread availability of repayment plans that cap monthly payments relative to borrowers’ earnings. “The consumer protections promised under federal law should make it nearly impossible for the most vulnerable consumers to be trapped in default,” CFPB Director Richard Cordray said in a statement. “Today’s report shows that far too many of these borrowers continue to fall through the cracks.”
As many as 75 percent of borrowers who default on their federal student debt will default again, according to estimates cited by Frotman.
Obviously, senior student loan borrowers on fixed incomes and diminishing savings are “the most vulnerable consumers.”
The bankruptcy laws on student loan dischargeability must be changed.