Whether you took on high levels of debt to pay for your college education or you are struggling with student loan debt because you supported your child with respect to college tuition, there are various factors you need to consider, especially when it comes to your financial future and your estate plan. Sometimes, people have very high levels of student loan debt and this impacts their estate in different ways.
Moreover, while many people recognize that young Americans and parents have a lot of student loan debt, an increasing number of older adults are struggling with student loan debt as well.
Reviewing statistics on student loan debt
According to the Consumer Financial Protection Bureau, borrowers who were 60 and over between 2005 and 2015 accounted for the most rapidly growing segment among those who took out student loans. Older adults sometimes take out student loans to help their children or grandchildren cover the cost of attending college, and some attend college themselves. In fact, many older adults default on student loans, which can interfere with their Social Security benefits.
Reviewing the impact of debt and estate planning
Many older adults are dealing with other financial issues, such as creating an estate plan, and it is imperative to focus on the different ways debt can affect an estate plan. Whether you need to work to cover the cost of student loan debt or your Social Security benefits are affected because you defaulted on your loan, it is important to carefully review your options with respect to debt and take steps to protect your estate.