Tip: Try a valid symbol or a specific company name for relevant results A pro-grade research workspace with advanced charts, company data and real-time news. Now part of Yahoo Finance Gold.Learn more A 70-year-old owes $200,000 in parent student loans for his kids — experts warn against draining retirement to pay it Student loans aren't just a young person's problem. In the two decades leading up to 2024, the number of adults 60 and over with student loan debt increased sixfold.
Those older debtors also owe more than ever, with the amount of debt they carry nearly 20 times higher than two decades ago. While most older borrowers owe for their own education, some retirees are saddled with student loan debt because they borrowed to help their children get a leg up. But that can leave them struggling to make ends meet in retirement with huge loan balances.
Let's say, for example, that Raymond took on student debt to help his son and daughter earn their degrees. The problem is, Raymond now finds himself at age 70 with $200,000 in debt and no clear way to dig out of the hole. Raymond must start by taking a close look at the debt he's carrying so he can understand his options.
"I think the first step here is to figure out exactly what kind of loans you have," Steve Sexton, CEO of Sexton Advisory Group, told Moneywise. "Federal Parent PLUS Loans, federal consolidation loans and private student loans all have different rules and repayment options." Sexton explained that federal student loans may offer very flexible payment plans. "Depending on how and when the loans were consolidated, some borrowers may qualify for an income-driven repayment option, which will help make that monthly payment much more manageable," he said.
Raymond would need to have consolidated his PLUS Loans and had the consolidation loan disbursed before July 1, 2026, to be eligible for an income-driven payoff plan. But even if he didn't do that, he may still be able to consolidate his PLUS Loans to access the tiered standard plan, which gives him a longer repayment timeline (and lower monthly payments). If he has private student loans, consolidation isn't an option, but refinancing to reduce his rate could be, if he can qualify for a new loan with a lower rate than his current debt.
If he can't refinance, though, he's stuck with the payment arrangement he agreed to when he borrowed. Regardless of whether his student loans are federal or private, Sexton explained that "with a balance that large, the goal may not be to pay it off as quickly as possible. The goal may be to keep the loan in good standing while preserving enough money to live comfortably." **Read More:****Vanguard reveals what's coming for U.S. stocks — and it could be bad news for this group of investors** While Raymond may want to abandon the idea of early debt payoff, he still must make sure he doesn't get into financial trouble with how he handles his loans.
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