'I'm in my 60s and still paying off student loans': Why older Americans' education debt has surged 67%

Student loan debt in the United States is increasingly becoming a burden that follows borrowers into old age. Money borrowed for college compounds over decades, and more Americans in their 60s and 70s are finding themselves still working just to keep up with repayments.

The Wall Street Journal reported Thursday that student loan debt is shadowing a growing number of Americans into retirement, with the number of federal student loan borrowers aged 62 and older surpassing 3 million — a roughly 67 percent increase from about 1.8 million in 2018.

Data from the Education Department show delinquency rates among older borrowers are rising rapidly. Many retirees depend on fixed incomes or face mounting medical costs, leaving them less able to make payments. Prolonged delinquency can result in the garnishment of Social Security benefits, tax refunds and wages.

The debt burden among older borrowers is also far heavier than among younger ones. Baby boomers with federal student loans carry an average debt of about $45,000 — more than three times the roughly $13,800 average for borrowers under 24.

The Journal highlighted the case of Chris and Carolyn McAuliffe, a couple in their 60s from New Jersey. They borrowed about $114,000 for graduate school, but after enrolling in programs that extended their repayment period, compound interest caused their outstanding balance to balloon to around $500,000.

Chris, an engineer at a health insurance company, said he regrets going to college. "Starting in July, my monthly payment will be about $3,000 — nearly three times what it was before the pandemic," he said.

The burden is expected to grow further under the Trump administration's overhaul of the federal student loan system. The new regime, taking effect in July, is expected to raise monthly payments for some borrowers and extend the repayment period required before debt forgiveness becomes available.

However, the new system does include some protections: a provision preventing unpaid interest from compounding when minimum payments fall short of covering it, and a cap on Parent PLUS loans of $20,000 per student per year.

There are also many cases of older Americans sacrificing their retirement security to cover their children's tuition.

Robert Lee, 71, took out $66,000 in Parent PLUS loans in 1997 to pay for his two children's college education. He has repaid $91,000 so far, yet still owes about $51,000.

"My kids are all successful, but the debt is still mine," he said, adding that he worries about unexpected medical expenses.

Some older borrowers have begun organizing to demand loan relief.

A Facebook group called "The Fifty," made up of borrowers aged 50 and older, is pressing the government for reforms to the student loan system and relief from their debt burdens.

Amy Corrier Miller, a lawyer from Texas, said the group dislikes the word "forgiveness." "Most of us have already paid back two or three times the principal and still have debt left," she said.

Sharon Duckey, a 72-year-old social worker, had dreamed of traveling in retirement, but reality has proven different. To pay off $101,000 in student loans, she continues to seek part-time work on top of her pension and Social Security benefits.

Duckey had been paying about $100 a month under the SAVE repayment program, but was notified that when the program ends, her monthly payment under the new system could rise to as much as $900.

The Journal said student loan debt has spread beyond a tool for investing in higher education to become a structural problem reshaping life after retirement. The combination of compound interest and long repayment structures means a growing number of older Americans have repaid far more than their original principal and still cannot escape their debt.