What would you like to know
- About a fifth of student loan debt is not eligible for the payment break instituted in 2020.
- AARP worked with Savi to customize the student loan repayment tool for older borrowers.
- The tool does not imply or promote the refinancing of student loans.
Student loan debt has reached crisis proportions in the United States, and it’s an intergenerational problem, according to a new study.
The AARP Institute for Public Policy reported this week, Americans 50 and over held $ 336.1 billion, or 22%, of the $ 1.6 trillion in student loan debt in 2020, up from 10%, or $ 455.2 billion, in 2004.
The organization also announced an initiative to help people manage their student debt.
“Student loan debt is becoming a burden on all generations, trapping more seniors and delaying or crushing retirement plans for many,” Gary Koenig, AARP’s vice president for financial security, said in a statement. “Paying for higher education was never meant to last a lifetime.”
In March, the Biden administration extended until September the payment suspension that began at the start of the pandemic, including for some 7 million people aged 50 and over.
However, AARP Analysis found that about one-fifth of student debt, or more than $ 300 million, is not eligible for the suspension of payment. The AARP estimated that between 2 and 3 million former debt holders could be left out.