Facing Retirement with Student Loans

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More than $18.2 billion in student loan debt is held by Americans aged 65 and older. As baby boomers continue to retire by the thousands, that number will continue to rise.

Those in retirement with school debt and those approaching retirement with school debt likely did not borrow the money for their own education. Rather, they took out or co-signed loans for a child or grandchild.

Quite often, people don’t realize that co-signing places repayment responsibility on them when the person for whom the loan was taken fails to pay.

And it’s awkward pressuring a family member, especially if they don’t have the resources to make payments.

Unfortunately, school debt usually survives bankruptcy, placing seniors at great financial risk and a host of negative consequences. Those negative consequences include, but are not limited to, the following:

• Seniors with school debt may be forced to work longer before retirement, perhaps even part-time in retirement in order to meet everyday expenses.

• Seniors with school debt may have stopped saving for retirement in order to make debt payments. They even may have borrowed from their current retirement plan to pay down debt.

• Seniors with school debt may refrain from seeking needed health care for lack of funds.

• Seniors with school debt may be unable to obtain loans to make needed repairs, purchase a vehicle, or deal with other expenses.

• Seniors with school debt maybe unable to help other family members in need, even though that school debt arose from helping a child or grandchild further an education.

In fact, approximately 200,000 retirees currently have their Social Security income garnished in order to satisfy defaults on school debt.

There are steps you can take to address when school debt is part of the financial picture, as well as long before it becomes part of the picture.

Contact us for more information on what you can do to address the above long before any of it occurs.

We are waiting to hear from you…

 

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