WASHINGTON–Student debt, so often associated with Millennials, is increasingly a problem for people 60 and older, even though it’s likely they didn’t attend school themselves, according to a new report from the CFPB.
The report, “Snapshot of Older Consumers & Student Loan Debt,” found that the number of people 60 and older with student loan debt quadrupled from 2005 to 2015, increasing from about 700,000 to 2.8 million people.
The CFPB said the average amount of student loan debt owed by older consumers over that time also increased from $12,100 to $23,500, with older consumers owing a total of $66.7 billion in student loan debt as of 2015.
Based on the CFPB’s analysis of survey data, 73% of older student loan borrowers (which appears to include co-signers) report that their student loan debt is owed for a child’s and/or grandchild’s education.
The proportion of delinquent student loan debt owed by older consumers increased from 7.4% to 12.5% from 2005 to 2012, with 37% of student loan borrowers age 65 and older in default in 2015, the CFPB said.
Moreover, the CFPB said it found the number of borrowers age 65 and older who had their Social Security benefits offset to repay a federal student loan increased from about 8,700 to 40,000 borrowers from 2005 to 2015.
The report indicates that as of Jan. 1, 2017, consumers 62 and older submitted approximately 1,100 student loan complaints and approximately 500 debt collection complaints related to student loans.