HOW TO NAVIGATE STUDENT LOANS IN RETIREMENT

From Goldstone Financial Group

The issue:Student debt is at an all-time

high; about 44 million Americans hold almost $1.4 trillion in

outstanding debts.

Currently, 6.4% of student loan borrowers are age 60 or older.

That number is expected to grow as young Americans carry their debt further into their futures.

Stretching out payments:

Because older Americans are usually living on a set fixed income

and federal loans are nullified upon death, it often makes sense to reduce monthly payments by arranging to stretch out the loan

term. While this increases the total amount of interest paid, it serves to keep monthly payments to a minimum which can assist with

budgeting purposes.

Obama-era program can help:

• While three-fourths of older borrowers with student loan balances are only holding balances on their own education, the remainder are holding balances on a child or other relative’s education.

• The latter may be eligible for an Obama-era repayment program called the Pay as You Earn PAYE program, which limits required payments based on earnings. Borrowers can check on the Federal Student Aid website to determine eligibility.

INCOME-BASED REPAYMENT:Caps maximum monthly payments at 15% of discretionary income. One of the most appealing aspects of this program is that after 25 years of continuous repayments,

borrowers may be eligible for loan forgiveness for the remaining balance.

- Be aware -

Now, though, 173,000 Americans received reduced Social Security checks because of

unpaid student loan debts. These factors are important to consider early so that Americans with student loan debt can be

aware of the costs that may lie ahead.