Older student loan borrowers quadrupled since 2005
According to a report by the Consumer Financial Protection Bureau (CFPB.gov) The number of consumers age 60 and older with student loan debt has quadrupled over the last decade in the United States, and the average amount they owe has also dramatically increased. In 2015, older consumers owed an estimated $66.7 billion in student loans. Although most student loan borrowers are young adults between the ages of 18 and 39, consumers age 60 and older are the fastest-growing age segment of the student loan market.
Grandparents financing grandchildren’s education
This trend is not only the result of borrowers carrying student debt later into life but also the growing number of parents and grandparents financing their children’s and grandchildren’s college education. Today, the majority of older student loan borrowers have loans that were used to finance their children’s education. They may have taken out these loans directly or cosigned on a loan with the student as the primary borrower.
This is affecting senior’s ability to retire
A 2019 AARP Public Policy Institute report found that 15 years ago, borrowers 50 and over held $47 billion of the nation’s $455.2 billion in student loan debt. By 2018, that figure had risen to $289.5 billion of an overall $1.5 trillion.
A senior’s Social Security can be garnished
Most seniors are unaware that their social security benefits can be garnished for failure to pay federal student loans up to 15 percent if the borrower defaults. Many seniors depend solely on social security to pay their basic expenses and any garnishment can be the difference between that senior living in a safe area or having to move to a dangerous, but a cheaper area.
MUSINGS FROM DIANE:
Education is supposed to be an investment in a society’s future.
For most of my life, I have paid my bills. College was expensive, but I had two part time jobs to cover the costs (no, my parents did not help). When it came to law school, I was told by the law school that a job was not an option. After my savings ran out, that meant relying on student loans. In those days the colleges were not a profit center, so their tuition was reasonable. But that is not the case today. Rather than looking at the long range benefit education offers our society, colleges everywhere see students as cash registers. Every year they raise their tuition, usually far above the average cost of living increases. While cutting their costs as much as possible (hiring less capable professors and offer fewer classes), with the goal to increase their profits. The school knows the students will take loans in order to obtain the education they believe will help provide a better life. But, the students rarely know how much that loan will cost; they only know that their family is so proud they are going to college. Many don’t complete their college education, but are still strapped with the student loans that grows more and more each day.
When are we going to return to the recognition that education is an investment in our future?
By Diane Drain|Published On: March 1st, 2020|Last Updated: August 1st, 2020|
Diane is a well respected Arizona bankruptcy and foreclosure attorney. As a retired law professor, she believes in offering everyone, not just her clients, advice about bankruptcy and Arizona foreclosure laws. Diane is also a mentor to hundreds of Arizona attorneys.
*Important Note from Diane: Everything on this web site is offered for educational purposes only and not intended to provide legal advice, nor create an attorney client relationship between you, me, or the author of any article. Information in this web site should not be used as a substitute for competent legal advice from an attorney familiar with your personal circumstances and licensed to practice law in your state. Make sure to check out their reviews.*
5 / 5
“You folks are the BEST OF THE BEST in Arizona.” M.H.
You and Jay are the best attorneys I have ever had or needed and thank God for the Honorable Robert Gottsfield in recommending you folks – I would have never made it through the entire process without you and Jay and God Bless you both always and stay in touch as well. You folks are the BEST OF THE BEST in Arizona.
5 / 5
“My only regret is that I didn’t find Diane sooner.” K.H.
I can’t say enough good things about Diane. The way she handled my not typical circumstances was amazing. I was very nervous to start the bankruptcy process but Diane just has a very comforting way of explaining the whole process. My only regret is that I didn’t find Diane sooner. If you find yourself in a financial situation that you can’t correct on your own, please Call Diane Drain as soon as possible.
5 / 5
“Filing for bankruptcy can be a stressful life event” R.A.
Filing for bankruptcy can be a stressful life event, and selecting the right attorney can add to this stress. Diane and Jay were a pleasure to work with, and it is obvious that they are passionate about helping people get their life back on track. I would highly recommend them if you need a bankruptcy attorney.
Education Loans Can Be Discharged in Bankruptcy Busting myths about bankruptcy and private student loans By Robert G. Cameron – APR 12, 2022 (Reprint from Consumer Financial Protection Bureau "www.CFPB.gov". The following is an [...]
CFPB Charges Performance SLC and Performance Settlement, Daniel Crenshaw, with Using Deceptive Tactics November 5, 2020 – The Consumer Financial Protection Bureau (Bureau) filed a complaint against Performance SLC, LLC [...]
CFPB Settles with Discover Bank, the Student Loan Corporation and Discover Products for violating a consent order and other unlawful practices December 22, 2020 Consumer Financial Protection Bureau issued a [...]
My intention is to put you back in control of your life
Start with $0 down*. We provide affordable payment plans.
We are a debt relief agency; we help individuals and small businesses through the bankruptcy process. Attorney Advertising. This website is designed for general information only. Any information you obtain from this website should not be construed as legal advice, nor as grounds for forming an attorney-client relationship. You should consult an attorney for information on obtaining formal legal advice.