Millions of Americans age 55 and older still have not paid off their student loan debt, according to the Federal Reserve’s 2022 Survey of Consumer Finances released Wednesday.
The survey An estimated 2.2 million people over the age of 55 have student loan debt that is impeding their retirement planning, according to an analysis by the Schwartz Center for Economic Policy Analysis at The New School University.
About 43% of borrowers in this age group are middle-income, according to the analysis. The average debt load for seniors in the U.S. who earn less than $54,600 a year is about $58,000.
Older Americans can take years to pay off their student loans, and more than 14% never even get a degree to show for paying off their debt.
“Three policies would help minimize the negative impact of student loans on retirement savings: student loan forgiveness, income-based repayment (a key component of the Savings for a Valuable Education (SAVE) plan), and preventing the garnishment of Social Security benefits for student loan repayment,” the analysis said.
The data comes as the Biden administration seeks to forgive billions of dollars in student loan payments and make it easier for millions of Americans struggling to pay off their debts.
Copyright 2024 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
