SPRINGFIELD, Mo. — A new report shows crushing student loan debt is not just a problem for young people. The consumer financial protection bureau says Americans 60 years and older are struggling with student loan debt to pay college for their children.
A new government report says Between 2012 and 2017 the number of older Americans saddled with student loan debt jumped by at least 20 percent in every state.
Nationwide, the age group’s total outstanding student debt increased by more than 50%.
The Consumer Finance Protection Bureau, or CFPB, says older Americans are taking out loans or co-signing loans for their kids and grandkid’ education. Thus, putting their own financial future at risk.
Seth Frotman of the CFPB says, “There are real concerns about what are the true implications this is having for people who are entering retirement, going into fixed income or seeing their income decrease.”
The CFPB says 45 states saw a spike in the number of older borrowers who are at least 3 months behind on their payments.
“Borrowers are being pushed into poverty, being pushed further into poverty — having critical retirement savings eaten into,” Frotman said.
As national student loan debt reaches 1.3 trillion dollars, the CFPB warns this is a problem that could impact everyone.
“We really hope this report is a wake-up call for policy makers, borrowers, to understand that we’re on the cusp of what we’re concerned is a crisis,” Frotman said.
You can see the report here.