Education Loan Debt Soaring Among Grownups Over 50, AARP Study Discovers

Growing balances might be a surprise for their your your retirement plans

Editor’s Note: a mention of the the MIT AgeLab task happens to be expanded to supply increased detail.

Education loan financial obligation keeps growing at alarming prices for grownups age 50 and older, in accordance with a brand new report from AARP. Fifteen years back, borrowers in this age bracket accounted for $47 billion of this country’s education loan financial obligation. By a year ago, that figure had grown to $289.5 billion.

Spending money on degree has become an intergenerational burden, ensnaring more older grownups and delaying or battering the retirement plans of numerous of those.

The report states that in 2015 “approximately 29 percent associated with the 6.3 million borrowers many years 50-64 had been in default, ” meaning payments on that loan had been at the least 270 times overdue. And among the list of 870,000 individuals over age 65 that has education loan financial obligation that 12 months, 37 % were in standard, allowing for the authorities to occupy to 15 per cent from their monthly Social protection advantages.

“Many folks are carrying their student that is own loan for longer amounts of time, ” said Lori Trawinski, AARP’s manager of banking and finance and lead composer of the report. (more…)