Student Loan Payments after 65

[lddalton]

AARP has represented and helped senior citizens in many different categories over the years.  AARP has assisted in major role in Washington to help persuading our politicians to continue helping our American senior citizens.  But there is one area I don't think AARP has considered nor the politicians in Washington DC . 

As my wife and I have reached the age of 65, it has become extremely burdensome to carry her student loan payments.  Yes, my wife cumulate the student loans later in life and she went back to school and graduated with her degree in 1997, but still carries the student loan payments of over, $400 a month.  

With Washington giving away money to help young folks with children and stimulus money benefits in lump sums to millions of Americans help them through the hard times of this pandemic, there is still a need to help senior citizens that are carrying the student loans into the retirement years.  Therefore my question is, could AARP convince Washington politicians have mercy on the senior citizens that carry a balance on their student loans into their retirement years?  I know that some of our senior citizens are very wealthy and have no trouble paying these student loans off, but thousands of us are not wealthy and are on an limited income.  My personal opinion is that once you begin to draw your Social Security benefits, your student loans should be automatically forgiven.

Could you please give comments and updates regarding this issue.

Thank you,

Larry Dalton

[MaryB308056]

I TOO have student loan burden debt- I too was a late college student. I am a nurse and wanted to leave the bedside and teach aspiring nursing students. Long story short you need advance degrees to teach in higher education. After you receive a masters degree in your specialty- mine such nursing, they demand you to get your doctorate or lose your teaching job. I did what was expected of me to stay teaching but not eh education side of things they don't help with tuition funds. I did apply for the fedlaon program as I teach in a community college and make less than what my newly graduate nurses make a year...very sad. Anyway, the fed loan program is broken, as it seems my years of participation is not being taken off. I want to retire when I am 65 and cannot retire because I have more years added on that fedloan and do not understand why. So I agree- I believe those of us who begin securing our Social Security shawl automatically be forgiven of our student debt. 

[LaurajW510385]

Thank you Larry for your update information about Elderly & student loans-it is Greatly Appreciated in more ways than one!

For me to ever describe my situation would be a shame on those that forced it down my throat; however in the SSD-I that I receive & being without "taxable income" my student loans sit there collecting interest on a daily basis & in knowing now those federal SSD-I benefits are 100% federally protected (unless...)...& those same funds stolen from me in my ignorance another forced down my throat.

...it has been extremely difficult in finding at least a part-time job & using that to cover the student loans while residing on the streets homeless.

I agree AARP in some of Larry's inquiry & those of us who are the hardest hit when it comes to any type of discrimination. Surely you can look into these things AARP for quite a few of us?

Thank you

Stay Healthy!!!

P.S. I am sure there will be a response of which is inapplicable yet its going to be there.

In my silence for so long of struggling in more than "surviving" as an American Citizen.

[LaurajW510385]

Thank you AARP in hearing us, reading us & seeing us out here who are seeking inquiry of you further making contact with those in D.C. for some help mostly for some consideration. For I am sure Larry & I are not alone in any of this & do forgive those of whom the response is there yet inapplicable with no resolution & to remain Adult in all of it.

Stay Healthy!!!

[GailL1]

SSDI ( Social Security Disability Insurance) benefits may be taxable if you have other income that puts you over a certain threshold just like the Retirement SS benefit.  According to NOLO in June of 2020 ,  about a third of Social Security disability recipients do pay some taxes, because of their spouse's income or other household income. Supplemental Security Income (SSI) benefits are not taxed but they aren't connected to Social Security except that SSA administers the program of SSI.

If the disability is permanent and a person is receiving SSDI benefits, some types of student loans are able to be discharged under the TPD (Total and Permanent Disabiliy) provision.  This article describes it, eligibility criteria and what are the steps towards it.  

USNEWS & WORLD REPORT 07/08/2020 - Student Loan Disability Discharge: What to Know 

FSA also describes it:  

FSA Total & Permanent Disability Discharge / Forgiveness / Cancellation Criteria

Please make note that any amount that is forgiven/discharged/cancelled is taxable.

The OP (original poster) isn't talking about SSDI - he is talking about Old Age Retirement Social Security.

[GailL1]

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@lddalton wrote:

As my wife and I have reached the age of 65, it has become extremely burdensome to carry her student loan payments.  Yes, my wife cumulate the student loans later in life and she went back to school and graduated with her degree in 1997, but still carries the student loan payments of over, $400 a month.  

My personal opinion is that once you begin to draw your Social Security benefits, your student loans should be automatically forgiven.

Thank you,

Larry Dalton

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This is a public forum so you may get some comments from those who post here - like me.

WOW, Larry - with all the other problems that many seniors face approaching and into retirement, this probably isn't something that is on their radar; nor the governments' either.

Housing, food, no outside retirement savings, medical cost, medicine . . . . just to name a few.

Social Security isn't in good shape financially - personally, I think efforts should be more directed towards that BIG problem - 

Have you and your wife been able to save for your (individual) retirement during those 24 years?

What about a pension from a company where you have worked for many years?

If each or either of you have at least one of those things - along with Social Security - you are ahead of many seniors at this point in life.

I am not gonna ask how much that student loan was, nor will I ask how much she actually made from that degree in the last 24 years (1997 - 2021).  But those things should have been part of the decision long, long ago.  Young or Old - the decisions one makes for getting student loans are the same - including how to pay back the money.

Some people might ask the same question about having a mortgage at that stage of life too (approaching retirement age) and ask for it to be also forgiven.  LOL

I am sorry, Larry - but you two will probably have to handle this type of debt for as long as it takes.  Maybe when you reach full retirement age (that's the age when a person is no longer financially penalized for working and drawing SS retirement at the same time) or older and file for Social Security retirement, you can just keep working and pay off the student loan debt. 

It is a win, win

1.  The Social Security benefit(s) will get somewhat larger the longer the beneficiary works

PLUS

2.  Once filed for at FRA or higher, so there is not a benefit reduction, there will be Social Security coming in X 2 and this will allow you to be able to throw as much of it as possible at the student loan debt.   Paying regular expenses out of the work earnings.

In essence, paying the student loan debt with Social Security retirement benefits.   IOW, Paying the government debt with government money - 

WIN-WIN

[sktn77a]

It's a difficult position to be in, I'll grant you.  But whole "loan forgiveness" business just confuses me.  I'm going into retirement with a similar mortgage payment but really don't have any choice but to keep paying it.