Millions of Americans over the age of 55 have yet to pay off their student loan debt, according to the Federal Reserve Board’s 2022 Survey of Consumer Finances released Wednesday.
The research showed 2.2 million individuals over the age of 55 have student loan debt, and an analysis from the New School’s Schwartz Center for Economic Policy Analysis shows that this is hindering their retirement plans.
About 43% of borrowers in this age group belong to middle-income brackets, according to the analysis. The average debt for older Americans earning less than $54,600 is about $58,000.
Older Americans can still take years to finish paying off their student loans, and more than 14% don’t even have a degree to prove their debt.
“Three policies would help minimize the negative impacts of student debt on retirement savings: student loan forgiveness, income-based repayments – key components of the Savings on a Valuable Education (SAVE) plan – and preventing the garnishment of Security benefits. Social to repay student loans,” the analysis said.
The data comes as the Biden administration has forgiven billions of dollars in student loans while also seeking to make debt elimination easier for millions of Americans struggling with payments.
This story originally appeared on thehill.com read the full story
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