Forgive Student Loans over age 65

Over two million persons over age 65 still carry student debt – either for their children, or for themselves.

The total amount owed is approximately $70 billion—and in 2019, nearly 40 percent of  older borrowers were in default. 

Over 114,000 seniors have had Social Security benefits offset because of unpaid student loans – even when Social Security is their only source of regular retirement income.

From now on, let’s have the courage to say: “Enough is enough.”

People deserve an untroubled financial retirement. In England, all loans are in fact written off at age 65.

Most debtors over age 65 have been paying on their loans for a long time. Their incomes are not going up. Often, they cannot even cover the interest  

 “Parent Plus loans”  are a special form of financial cruelty. These loans have higher interest rates and even a 4% origination fee .Because students generally have no financial assets, lenders wanted access to their parents’ money. 

Loan forgiveness for seniors 65+ would not be complicated. The senior debtor can request forgiveness with proof of age, and their loan would be cancelled.

 If politically necessary, seniors’ loan forgiveness could be spread out over several years. In the first year, loans could be forgiven for borrowers over the age of 75; then in the next year, for those between 70 and 75, and so on.

Alternatively, we can start forgiving any loan to seniors whose current income is less than $40,000 a year and move up quickly from there. The majority of federally originated loans can be simply written off.