Seniors are the fastest growing category of student loan debtors. Many of the loans are not from their own college days, but were taken out to help their children and grandchildren in the face of skyrocketing education costs.
Of course, many seniors are among the least able to tackle debt because many are living on a fixed income instead of pulling a paycheck. As a consequence, delinquencies on student loans among seniors is on the rise.
Some federal loan borrowers have had their Social Security income seized by the government when they get behind. This can create real financial hardship considering nearly 21 percent of married people and 43 percent of unmarried people count on Social Security for more than 90 percent of their income.
In a perfect world, many older Americans hope to have all their debt eliminated prior to retiring so they can maintain some control over their living expenses. Yet, according to a recent study, 63 percent of older student loan borrowers owe mortgage debt, 67 percent owe credit card debt, and 45 percent have outstanding car loans in addition to student loan debt.
In light of the situation, many seniors seeking Chapter 7 or 13 bankruptcy protection is on the rise. Although student loans are typically not discharged in a bankruptcy, some seniors are able to liquidate other debt that is weighing them down so that they can get back on track and get a clean slate.
Contact an Experienced Illinois Student Loan Debt Attorney
If you are like many seniors, you may benefit from talking to an attorney to determine if bankruptcy protection is a good strategy for you and your family. Contact the Peoria Bankruptcy Law Offices of Charles E. Covey to discuss your unique situation. Call our offices today for a free initial consultation at 309-674-8125.