Student loan debt may prevent retirement security for millions of older workers, research finds

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Millions of older Americans’ ability to save for retirement may be threatened by unpaid student loan debt, according to new research.

Older workers who are still carrying student loan debt may have a harder time saving toward retirement.The research evaluates more than 2.2 million people over age 55 with outstanding student loans, according to the Federal Reserve Board's 2022 Survey of Consumer Finance.

For older workers ages 55 to 64, it may take an average of 11 years to pay off their student loans, according to the research. Workers 65 and up may need 3.5 years. The research suggests certain policies can help reduce the negative consequences of older Americans' student loan burden — forgiving student debt, making debt repayment easier and preventing the garnishment of Social Security benefits to repay student loans., federal student loan borrowers may be eligible to forgo making payments, or pay reduced monthly sums, depending on their incomes. After a certain period, loans may be forgiven.

Additionally, the Schwartz Center research suggests ending the garnishment of Social Security benefits to repay federal student loans in order help protect older Americans' income.In March, more than 30 Congressional lawmakers called for ending that practice.Workers who are tempted to take on student loan debt they may carry into their later years should carefully consider whether that investment will pay off.

 

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