The student loan crisis is not just affecting young college graduates, it is reported that a growing number of aging Americans are struggling to pay their student loans. Even a senior’s social security benefits become fair game for lenders when borrowers cannot keep up with their payments.
Among Americans ages 65 to 74, 4 percent in 2010 carried federal student loan debt, up from 1 percent six years earlier, according to a recent Government Accountability Office (GAO) report released. For all seniors, the collective amount of student loan debt grew from about $2.8 billion in 2005 to about $18.2 billion last year.
Student loan debt hits seniors especially hard because many of them are also struggling with other challenges such as health problems, divorce and job loss. Some went back to school in hopes of making a higher salary, or co-signed on loans to help fund their children’s education.
The GAO found that about 80 percent of the student loan debt by seniors was for their own education while the rest was taken out for their children or other dependents. Federal data revealed that seniors were more likely to default on loans for themselves compared with those they took out for their children.
The GAO found that about a quarter of loans held by seniors’ ages 65 to 74 were in default. In addition to docking Social Security benefits, the government can use a variety of collection methods to recoup student loans, such as docking wages or taking tax refund dollars.
For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at http://www.miamibankruptcy.com
Related Resources:
http://bigstory.ap.org/article/older-americans-struggle-student-debt
