Retirement News: Over 2 Million Age 55+ Americans Owe on Student Loans
A Federal Reserve Board’s 2022 Survey of Consumer Finances found that 2.2 million United States citizens aged 55 and over, and heading for retirement, still owe on their student loans. The student loans, in some cases, are causing those in the 55 age range to delay retirement until they pay off their student loans. On average, the survey found that those 55+ Americans owe over $58K in student loans. Chances are, with that kind of debt, they won’t be retiring any time soon. Many are defaulting on their loans. I would imagine that since it is federal loans, their Social Security is being garnished if they retire.
There are three ideas being floated to help those 55 and older with these student loans. One is student loan forgiveness, which is being considered now in some form through executive order by President Biden. Second, income based payments, which I find reasonable. Third is to stop garnishment of Social Security for those 55+ unable to pay back the loans.
I’m surprised there are over 2 million Americans over the age 55 still paying on student loans. I had no idea—none—that many people were still paying for student loans that late in their lives. If the average balance on student loans is truly $58K, how can anyone retire with that and quite possibly a mortgage as well? The average person in…
