To most of us, the word
retirement brings to mind images of a renewed enjoyment of life - a time when we will finally be able to put work aside and possibly even find time to stop and smell the roses. Then again, the phrase 'student loan debt' isn't one we usually associate with our golden years.
Unfortunately, these days, more and more older Americans are entering the retirement age bracket, but are unable to look forward to
retiring with joy. Sadly, many older Americans are still affected by student loans they took out in their younger years, but were simply unable (for a variety of reasons) to pay off.
In fact, there are approximately two million Americans aged 60+ who are still struggling under the weight of unpaid school loans. According to the Federal Reserve Bank Of New York, this number has tripled since 2005.
Some older Americans are saddled with student loans that they themselves took out years ago in order to put themselves through college, while others took on the responsibility of cosigning a student loan for a family member (
usually children).
Regardless of the reason for student loan debt among older Americans, attempting to repay an amount that is perpetually compounding due to high interest rates is exceedingly difficult for this particular group. Due to the fixed income that comes along with retirement, many retirees are finding it virtually impossible to stay up to date on their
student loan debt.
What this means for retired debtors is that they will likely experience wage garnishment from their Social Security income. For an already struggling group, this can spell financial disaster.
Although retired student loan debtors truthfully do only represent a very small portion of all student loan debtors, the seriousness of their particular situation is quite dire.
In fact, wage garnishment being taken out of Social Security payments will likely push these older Americans into poverty. Working hard your entire life, only to spend your golden years without two pennies to rub together just doesn't sit right with this New Jersey law office.
Can you relate to Carrie Mallik*? Age 62, Carrie is experiencing some declining health and a home loan that she can't afford. On top of that, she owes over $100,000 on a $15,000 student loan from her youth, due to the astronomical interest rate when she borrowed the money. Unable to afford both her mortgage payment and her student loan debt, she is quickly finding herself in a hopeless situation. If you can relate to Carrie, it's important that you know that
there is hope for you.
Because of new legislation, people who took out student loans prior to July 2013 will now be able to refinance their student loans at significantly lower interest rates.
Finding a NJ attorney like George Veitengruber, who is experienced in and passionate about credit counseling and debt restructuring, is key to your success in this situation.
Veitengruber Law can help you secure your retirement and allow you to enjoy your golden years as planned. Call now
(732) 852-7295.
Image credit: The Arches
*Name changed