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Interesting 65+ Student Loan Debt Data From CFPB Should Make You Say No

By on December 20, 2016

The Consumer Financial Protection Bureau rolled out a new online tool that you can use to visualize consumer credit trends.

One of the categories is student loan data. A couple of graphs were very disturbing. The first was on student loan lending levels for those younger than 30. This would be the traditional college-bound student.

screen-shot-2016-12-20-at-12-56-26-pm

Notice how the trend is going down?

Now look at the trend for those 65 and older.

screen-shot-2016-12-20-at-12-57-11-pm

For me this just is a glaring example of how grandma and grandpa have been going on the hook more and cosigning student loans. There is no other explanation why this demographic would have a trend like this. And it aligns with the change back in 2009 when private student loan lenders switched to requiring cosigners to screw go after when the overlent student could not make the payments.

If you are over 65 and a friend or family member asks you to cosign for any loan, just give them a hug, tell them you love them, and say no.


If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

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About Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

2 Comments

  1. Paul Standal

    December 21, 2016 at 12:51 pm

    Another reason many seniors have excessive student loan debt is exploding capitalizing interest. In my case, after returning to school to get my PhD, in 1994, I consolidated several smaller loans into a Sallie Mae total loan amount of $59,430 at a rate of 9%! My mistake was to take a couple of short deferments early on as I started my business during which interest was added on to my balance. Net result is today my balance is over $206,000!! Yes, I am in the IBR program to keep my payments lower but in 20 years practically nothing has gone to reduce my principal and I have paid back well over my original loan amount…All going to interest which continues to accumulate at 9%! No way out..no bankruptcy and no way to settle. I have tried…Since I am 71 years old, it looks like it will have to be the “death clause” for me and my family. I do not see my demographic addressed very much so please continue putting light on this issue. Thanks..

    • Steve Rhode

      December 21, 2016 at 2:06 pm

      You bring up a great point that many fail to listen to, the IBR can feel like a great fix but the consequences of exploding balances can be nasty. Thanks for the comment.

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