Real Estate
Home›Real Estate›Mortgages›Older adults face mounting parent student loan burdens…
Older adults face mounting parent student loan burdens in retirement
The share of Americans age 60 and older with student loan debt has risen sixfold over two decades, and their balances are nearly 20 times higher than they were then, leaving some retirees without a clear repayment path.
Yahoo Finance highlights that student loan debt is increasingly affecting older Americans, citing a sharp rise in the number of adults 60 and over carrying student loans over the past two decades. It says the number of older debtors grew sixfold in the two decades leading up to 2024, and that their total balances are nearly 20 times higher than two decades ago.
The outlet notes that while many older borrowers took out loans for their own education, some retirees are burdened with debt they accumulated to help their children, such as through Parent PLUS borrowing. It describes a scenario of a 70-year-old with $200,000 in Parent PLUS related student debt and no clear way to repay in retirement.
Yahoo Finance also points to guidance from Steve Sexton, CEO of Sexton Advisory Group, who says borrowers need to identify what type of loans they have because rules and repayment options differ. The article says federal loans may offer flexible payment plans, including income-driven repayment options in some cases.
It further explains that eligibility for income-driven payoff plans depends on consolidation timing, specifically requiring PLUS Loans to be consolidated and the consolidation loan disbursed before July 1, 2026. The piece also notes that if the debt is private student loans, consolidation may not be available, though refinancing to reduce rates could be an option if a borrower qualifies.