Seniors Assuming Children’s and Grandchildren’s Student Debt
Recent college grads without employment are increasingly relying on parents and grandparents to help out with student loans. One effort to alleviate the student debt crisis comes from Michigan Rep. Hansen Clark (D) who introduced The Student Loan Forgiveness Act on Thursday March 8th.
vai Washington Post
It’s not just young people who are saddled with student debt. A new report from the Federal Reserve Bank of New York shows that one-third of all Americans with outstanding student loans are over the age of 40 — and 4.2 percent are over the age of 60. While borrowers in their 30s had the highest average balance, at $28,500, those in their 40s were close behind, with an average balance of $26,000.
One reason seniors end up with student loans is parents are increasingly assuming debt on behalf of their children. And given the rapidly rising cost of college, the proportion of older borrowers — and the average debt load they are carrying — is likely to get even larger in the future.