Having student debt becoming more and more common among seniors
Many years ago, it was fairly uncommon for a person to have much in the way of student debt in their elderly years. It is estimated that, in 1989, $400 was the average amount of education debt for retirees in the 65 to 74 age group and such debt made up less than 1 percent of the “installment” debt of retirees in this age group.
However, things are now much different. Substantial student loan debt is far less unusual of a thing for an elderly individual to have. According to some recent estimates, nowadays, the average amount of education debt for retirees who are in the 65 to 74 age group is upwards of $2,300 and a whopping 15 percent of this group’s overall “installment” debt load consists of education debt.
There are many problems having higher student loan debt could pose for today’s seniors. One is that it can create some real problems with their retirement. Having significant student loan debt can be a substantial financial drain on a senior, and substantial financial drains can potentially greatly reduce an elderly person’s ability to be well-supported financially in their retirement.
Thus, one of the big debt relief questions that many seniors may have these days is: what can be done to help reduce the likelihood that high student loan debt will ruin my retirement?
Now, what debt relief solutions might be best for an elderly person who is going into their retirement with a big amount of student loan debt can be quite different from what solutions might be best for a younger individual who is struggling with such debt. This is because the appropriateness/helpfulness of a given debt relief solution to a given student loan debt problem can be greatly impacted by the overall financial situation of the person facing the problem. Obviously, the overall financial situation of retiree can be starkly different from the overall financial situation of a young person who likely has many years of employment ahead of them.
Bankruptcy lawyers can provide guidance to retirees who are struggling with high debt, such as high student loan debt, on what debt relief mechanisms might be able to provide them with relief that could help safeguard their retirement.
Source: USA Today, “Retirees have more education debt than ever,” Hadley Malcolm, May 18, 2015