A particularly worrying trend is the number of older people who continue to harass student loans… As of the end of 2020, roughly 8.5 million Americans in their 50s owed about $ 349 billion in federal student loans, up 37% from the fourth quarter of 2017., according to Federal Student Aid. Worse, this debt remained behind their years of labor.
“Every year, thousands of seniors carry over their student loan debt into retirement, and there’s a lot that is unnecessary,” says Martin Lynch, compliance manager and director of education at Cambridge Credit Counseling, a nonprofit in Aghavama, Massachusetts, which provides free consultations. on student loans.
If you are struggling to pay off federal student loans, ask your loan provider if you are eligible for one of four income-based repayment plans. Benefits are set as a percentage of your discretionary income, which is based on your income and household size comparison with federal poverty guidelines. The remaining balance can be forgiven after 20 or 25 years, depending on the plan. If you work for a state, municipality, or non-profit organization, you may be eligible for account balance forgiveness after 120 qualifying requirements are met. Studentaid.gov there is more information about loan forgiveness program…
While you can combine federal student loans with a private lender to get a lower rate, this will strip you of your eligibility for federal loan forgiveness and the income-based repayment program.