Did you know that student loan debt affects seniors as well as younger individuals? It’s true; senior citizens have been accumulating student loan debt at an alarming rate, and not many are looking to do anything about it.
Thankfully, Senators Chuck Schumer and Elizabeth Warren called for debt cancellation for seniors. They asked the Biden-Harris Administration to cancel up to $50,000 in student loans.
Debt Continues to Grow
According to what Warren and Schumer told CNBC, senior citizens have been accumulating student loan debt at an alarming rate. Citing AARP, the article explains that those 50 or older accounted for $47 billion of the student loan debt in 2004.
However, by 2018, that number grew more than 6 times its size, reaching $289.5 billion! And this number only continues to grow. By the end of 2020, borrowers age 50 and older owed $336.1 billion —which accounted for about 22 percent of total student debt.
The accumulation of this debt has been detrimental to senior citizens. In fact, the article reports that Social Security benefits are often not being used to pay for necessities. Instead, these benefits go towards various fees and interest the student loans have accumulated.
It’s Time for Change
While Senators Warren and Schumer ask for a small step toward a more financially secure future for senior citizens, the Senior Security Alliance is looking to take a leap.
Our bill denies any cuts to the hard-earned benefits seniors rely on. In addition, the bill also demands that the increasing healthcare prices be a part of the annual COLA calculations. With these adjustments, we can help senior citizens get out of a seemingly never-ending debt and into a more financially secure future.
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