Why to Manage Your Student Debt Carefully: So You're Not Repaying When You're Old & Graying
By: Steve Grumm
That kind of rhymed. Anyway, from the Washington Post:
The burden of paying for college is wreaking havoc on the finances of an unexpected demographic: senior citizens.
New research from the Federal Reserve Bank of New York shows that Americans 60 and older still owe about $36 billion in student loans, providing a rare window into the dynamics of student debt. More than 10 percent of those loans are delinquent. As a result, consumer advocates say, it is not uncommon for Social Security checks to be garnished or for debt collectors to harass borrowers in their 80s over student loans that are decades old.
That even seniors remain saddled with student loans highlights what a growing chorus of lawmakers, economists and financial experts say has become a central conflict in the nation’s higher education system: The long-touted benefits of a college degree are being diluted by rising tuition rates and the longevity of debt.
Some of these older Americans are still grappling with their first wave of student loans, while others took on new debt when they returned to school later in life in hopes of becoming more competitive in the labor force. Many have co-signed for loans with their children or grandchildren to help them afford ballooning tuition.
As noted, some of this debt was incurred by parents and grandparents who co-signed on others’ education loans. Nevertheless this story offers a helpful scare about how even our own “first generation debt” can hang with us if we don’t borrow wisely and take full advantage of repayment solutions. You can learn more about solutions/resources through folks like Heather Jarvis and the people at Equal Justice Works.