As reported by the Washington Post, the number of older Americans assuming student debt responsibility on behalf of their children (and grandchildren) has quadrupled in the past decade, with consumers over 60 now holding $66.7 billion in student loan debt, according to a new report by the Consumer Financial Protection Bureau.The skyrocketing cost of college has placed a particular burden on older Americans, many of whom are struggling to pay back growing debts in their retirement years, according to the report. Nearly 40 percent of federal student loan borrowers over age 65 are in default, the highest rate for any age group, the data show.
Americans owe nearly $1.4 trillion in outstanding student loans. A slow job market recovery, growing income inequality and stagnant wages have made it difficult for younger Americans to be economically independent, and now there are signs that those financial struggles are dragging down their parents and grandparents as well. A growing number of borrowers over age 65 also said their Social Security benefits - often the only source of regular retirement income for older Americans - had been seized because of unpaid student loans, accor
ding to the report. Those with student loan debt also had less money saved for retirement than their counterparts without student debt did.
President-elect Donald Trump has said he would reduce the burden on borrowers by capping federal student loan payments at 12.5 percent of their income. After 15 years, their debts could be forgiven entirely.
Read more on the rapid growth of student loan debt carried by older Americans online.
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