Grandma Has a Student Loan? Why More Older Americans Are Taking on Debt

Yet another study finds that many student loan borrowers are struggling to make their payments. This study, however, isn’t focused on young college grads, who have decades of earning years ahead of them. Instead, it looks at a more surprising cohort: 60-somethings who are at or near retirement.

The report from the Consumer Financial Protection Bureau says the number of borrowers over age 60 has quadrupled in the past decade, and the amount that they owe has doubled to nearly $24,000. Four in 10 borrowers over age 65 were in default.

“Many of these older Americans are helping finance their children’s or grandchildren’s education while living on a fixed income,” CFPB Director Richard Cordray said in a statement. “We are concerned that student loans are contributing to financial insecurity for many older Americans and that student loan servicing problems are contributing to their distress.”

– The Fiscal Times

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