Crushing student loan debt is most associated with recent college grads. But it turns out that seniors also are being affected and such debt has the potential to derail or diminish people’s retirement.
Sometimes seniors are entering retirement with their own student loans. In other cases, they’re haunted by loans they co-signed for their children.
The average amount of student loan debt owed by borrowers age 60 and older rose from $12,100 to $23,500 between 2005 and 2015. Nearly 40 percent of federal student loan borrowers age 65 and older are in default.
If you’re in a similar position, your student debt obligations are another crucial figure to factor into your planning as you calculate retirement finances. After all, the federal government can and has offset such borrowers’ benefits to collect what’s owed on those old federal student loans.