Wednesday, April 04, 2012
Borrowing for a college education can be a lifetime commitment.
According to the Federal Reserve Bank of New York, about $36.5 billion of the nation’s student loan debt is owed by Americans in their sixties or older. This includes more than $4 billion that is past due.
Of the almost 2 million student debtors in this age group, some still owe money from their first loans early in life, while others borrowed later on after returning to school to make career changes.
In some cases, children and grandchildren co-signed for loans to help parents or grandparents receive the financial assistance.
It is estimated that more than 10% of loans owed by seniors are delinquent, and some borrowers have had Social Security checks garnished by debt collectors.
-Noel Brinkerhoff
To Learn More:
Senior Citizens Continue To Bear Burden Of Student Loans (by Ylan Q. Mui, Washington Post)
Grading Student Loans (Federal Reserve Bank of New York)
Who’s Profiting from Student Loans? (by Noel Brinkerhoff and David Wallechinsky, AllGov)