Student loan help needs are not just for the young at heart. There are many middle-aged and then some going back to school to obtain the degree they always wanted, change careers or finish what they started before family became a priority. Many women decide to go back to school after their children have grown and are in school full-time or have already left the home.
Obtaining student loans later in life extends payments well after retirement. What happens if a person cannot afford to make their loan payments? Smart Money requested information from the Treasury Department and found that Social Security recipients end up having their retirement checks reduces their paychecks. That's right, just as the government may withhold money from tax returns, the elderly are receiving less Social Security. The numbers of elderly who are receiving reduced checks has doubled since 2011.
By withholding up to 15%, the government is going to create problems for many people. Many of these people are not even paying the price for their own education, but instead took some of the education cost away from their children and/or grandchildren. Student loan help programs for elderly clients can be lifesaving.
When an elderly person has limited income and health related problems, medical costs become problematic when up to 15% of their limited monthly income is withheld. In 2012 there were over 2 million people age 60 and older who are in debt with student loans. Almost 10% of that same number was 90 or more days late in making payments. This number is double from 2005. With the growing amount of people moving into the 60 and over population, the growth factor for those delinquent with student loan debt is concerning.
It is important to do what you can about your student loans while you are young. No one sets out to be retired and in debt, but when the loans are not handled in an affordable way, retirement problems are bound to happen.
*Start paying interest while you are still in school. It may not be mandatory, but it is helpful to future finances.
*Defer payments for only the length of time necessary. The interest accrues and will be capitalized when added to the loan balance.
*Consolidate loans smartly. Private lenders will consolidate federal loans but will have higher rates. Get your federal loans consolidated through the government. Find a reputable student loan consolidation service to help find the most student loan help with your federal loans.
*Start paying on the loans as soon as possible in order to qualify for forgiveness programs.
As much as it feels good to help out your children or grandchildren to afford college, you will want to take a good look at your own financial stability. Protect your retirement days by limiting the amount of debt carried into your golden years of life. Talk with a financial adviser prior to signing the loans. If you have already done so, get in contact with a student loan debt relief service in order to find the best way to manage the long-term debt.
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