Many seniors facing college loan debt
April 12, 2012
Pursuing a college degree can be an expensive endeavor. The College Board reports that for the 2011-2012 school year public four-year colleges are charging an average of $8,244 in tuition and fees for in-state students, while out-of-state students pay an average of $12,526. Private nonprofit four-year colleges charge an average of $28,500 per year in tuition and fees.
Many people have turned to loans to help finance their college education. In fact, according to the Consumer Financial Protection Bureau (CFPB), outstanding student debt in the U.S. has now surpassed the $1 trillion dollar mark.
A recent from the National Association of Consumer Bankruptcy Attorneys (NACBA) revealed that college seniors who graduated with student loans in 2010 owed an average of $25,250 each.
"Young consumers are shouldering much of the punishment in the form of substantial student loan bills for doing exactly what they were told would be the key to a better life," CFPB's Rohit Chopra said during a recent speech to members of the Consumer Bankers Association.
While paying down college debt can be a challenge for recent graduates entering the job market and trying to establish themselves, a new report from the Federal Reserve Bank of New York finds that it's not just 20-somethings that are struggling to pay their college loans. In fact, more and more senior citizens are struggling with college loan debt.
The Washington Post reports that Americans 60 and older still owe about $36 billion in student loans. In addition, more than 10 percent of those loans are delinquent.
"Consumer advocates say it is not uncommon for Social Security checks to be garnished or for debt collectors to harass borrowers in their 80s over student loans that are decades old," the newspaper reports.
While some of the debt incurred by older Americans results from loans that were taken out for children or grandchildren to go to college, some is for themselves. Those who have gone back to school to remain competitive in the job market or to realize a dream for themselves are often saddled with large debt afterwards. And the problem is that many simply can't afford their loan payments.
"A student loan can be a debt that's kind of like a ball and chain that you can drag to the grave," said William E. Brewer, president of the National Association of Consumer Bankruptcy Attorneys. "You can unhook it when they lay you in the coffin."
The good news for mothers who want to return to college but worry about the long-term financial fallout is that loans are not the only way to pay for school. Grants for parents, scholarships for mothers and single mother scholarships all help moms pay for school without having to worry about long-term debt.
