Mon April 2, 2012
American Senior Citizens Still Owe $36 Billion In Student Loans
Americans 60 years and older are still paying off $36 billion in student debt. That's according to research from Federal Bank of New York, the Washington Post parses today.
The story is worth a read, but here is the gist:
"Some of these older Americans are still grappling with their first wave of student loans, while others took on new debt when they returned to school later in life in hopes of becoming more competitive in the labor force. Many have co-signed for loans with their children or grandchildren to help them afford ballooning tuition.
"The recent recession exacerbated this problem, making it harder for older Americans — or the youths they are supporting in school — to get good-paying jobs. And unlike other debts, student loans cannot be shed in bankruptcy. As a result, some older Americans have found that a college degree led not to a prosperous career but instead to a lifetime under the shadow of debt."
In its report the New York Fed also points out that 5.3 percent of student loan borrowers are older than 60 and they hold 4.2 percent of the national loan balance.