They're in Their 60s and Their Student Loans Won't Let Them Retire [View all]

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Student loans are increasingly following Americans into their 60s and rewriting what they believed would be their retirement years. More than three million people 62 and older owe federal student loans, up from 1.8 million in 2018, according to Education Department data. Delinquency rates among older borrowers have skyrocketed too, in some cases because they are on fixed incomes or have medical expenses. Those who fall into default risk having their Social Security benefits, tax refunds and wages garnished.

Baby boomers with federal student loans owe an average of roughly $45,000, more than three times that of borrowers 24 years old and younger, who owe about $13,800 on average.

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Starting in July, the McAuliffes are facing a bill of around $3,000 a month, triple what their payments were before the pandemic, Chris said.

Many are in a similar situation because of the Trump administration’s overhaul of federal student loans, which goes into effect July 1. The changes include repayment plans that could push up monthly bills and require more payments before debt can be discharged.

Other changes could help keep balances from growing over time. One plan, for instance, waives unpaid interest if monthly minimum payments aren’t high enough to cover it. Parents will also only be able to borrow as much as $20,000 a year per student, instead of the full cost of their children’s college education.

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