As of 2020, Americans owe over $1.7 trillion in federal student loans, a 104% increase in the past decade. In addition to this, there are about $133 billion in outstanding private loans. For many, it’s causing growing financial distress and creating an increasing amount of default among borrowers
In the meantime, here’s what seniors need to know about student loans and potential avenues of relief.
Why is Student Loan Debt Growing Among Seniors?
Why? One reason for the rapid increase in student loan debt among America’s aging population is their penchant for helping everyone from their children, grandchildren, extended family, and even friends.
The young are getting older
Advanced degrees and continuing education
The rising cost of college
In exchange, students were left with large loans, some federal and some private, for degrees that weren’t very marketable. Though some fraudulent programs were shuttered, and some loans forgiven, the vast majority of people are still paying those loans today.
What kind of private student loans do seniors have?
- Directly with the learning institution
- Personal loan
- Credit card
- Car title loan
- Home equity line of credit or home equity loan
- Being a cosigner on a private loan in any one or more of these forms
What are seniors struggling with when it comes to private student loans?
What are some private student loan relief options?
- Debt consolidation
- Debt settlement
- Reverse mortgage
- Pension advance loan
- 401(k) or 403(b)
- Exploring the statute of limitations on some private loans
- Be removed as co-signer (if criteria are met)
This is not an exhaustive list of potential remedies for student loan debt but it’s a good start to give you hope as you seek out help. If you or a loved one would like more information on tackling your private student loan debt, call the Private Student Loan Relief Helpline at (888) 669-1064 where a trained counselor can go over available loan relief options.