Millions of Americans over 55 still owe money on student debt: Survey

More than two million Americans aged 55 and older still have student loan debts as of 2022, according to a new survey released Wednesday.

The Federal Reserve Board’s 2022 Survey of Consumer Finances found that 2.2 million United States citizens aged 55 and above are struggling to pay off their debts, just as they head towards the retirement. The student loan debt is even impeding their ability to retire, the survey found, because roughly half of the respondents are making less than $54,600 a year, according to CBS News. But those borrowers, on average, owe approximately $58,000.

“Three policies would help minimize the negative impacts of student debt on retirement savings: student loan forgiveness, income-based repayments – key components of the Saving on a Valuable Education (SAVE) plan – and preventing garnishment of Social Security benefits to repay student loans,” an analysis of the data said.  The report was published by The New School's Schwartz Center for Economic Policy Analysis.

The report also notes that for Americans aged 55 to 64, it can take them an additional 11 years to finish repaying off their loans. But for workers aged 65 and over, it can take roughly 3.5 years. 

Some older Americans also did not finish their degrees, which makes it even harder to pay back the loans. Almost 5% of older Americans aged 55-64 did not complete the degree they set out for, and 17% of adults aged 65+ did not complete their degree. 

"The benefits only typically hold for those who have completed their degrees," the report's author, Karthik Manickam, said in a press conference. 

The report comes as President Joe Biden makes student loan forgiveness one of his top priorities. Biden announced a massive student loan forgiveness plan last month, where he expects to provide student debt relief for more than 30 million borrowers, according to Newsmax.