WASHINGTON (NEXSTAR) — A report from the Consumer Financial Protection Bureau shows crushing student loan debt is not just a problem for young people. More older Americans are struggling with it, too.
Americans 60 years and older are taking out or co-signing loans to pay for college for their children or grandchildren, the August report from the federal agency shows.
“Student loan debt is truly an intergenerational problem,” Seth Frotman of the CFPB said.
Between 2012 and 2017, the number of older Americans saddled with student loan debt jumped by at least 20 percent in every state. In Michigan, the number of older borrowers increased by 48 percent with a median balance per borrower of $15,864.
>>PDF: Older consumers and student loan debt by state
Not only are more older Americans taking on debt, they’re struggling to pay it back. The CFPB says 45 states saw a spike in the number of older borrowers who are at least three months behind on their payments. In Michigan, 15 percent of older borrowers are in delinquency, up from 13 percent five years ago.
“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,” Frotman said. “Borrowers are being pushed into poverty, being pushed further into poverty, having critical retirement savings eaten into.”
The CFPB says borrowers should make sure they understand their obligations if they are taking out or co-signing for loans.
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