Recent data from the New York Federal Reserve Bank suggests that a number of Americans ages 50 and older are still facing student loan debt. Call it the next bubble, crisis, or whatever you want. The fact of the matter is that this is a problem facing not only our recent graduates, but also those getting closer to retirement age.
The article highlights one lady whose problems started when she couldn’t get a job after graduation. She deferred the loan, but failed to realize that interest would continue to accrue. This put her in a deeper hole once she started to pay back the loan. She’s not alone. The focus of recent media attention seems to have been on our recent college grads entering a tight job market. As this article points out, people much, much older are facing seemingly insurmountable student loan debt. What many people don’t realize is that despite the fact that this debt might not be discharged in a bankruptcy, there is a possibility that your lenders would be willing to consider a negotiated settlement. If these seems to daunting a task, consider speaking with an experienced debt workout attorney that can review your loans with you and determine whether a workout (settlement) is possible on your loan. Folks headed towards retirement shouldn’t have the burden of student loan debt. Explore your options and get help if it’s available.