When you picture a student loan borrower, you might think of someone in their 20s who recently finished college. But one in five borrowers is over 50 years old, and some have spent years struggling to get help in a confusing and complicated system.
In the U.S., 43 million people have student loans, and they owe a combined $1.6 trillion, according to Department of Education statistics.Borrowers between 35 and 49 years old have the highest debt total, owing nearly $650 billion. This includes people like Heather Lawton.
"I'm not asking for forgiveness. I'm asking for help, and I'm not getting it," explained the 48-year-old.
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Lawton is a Gen Xer with an associate's, bachelor's, and two master's degrees, and she currently owes $167,000 in student loan debt. But for the last six months, she's made dozens of phone calls and spent hours on hold trying to get an accurate bill and a monthly payment she can afford.
"I'm not trying to get out of paying my loans. I'm just trying to get my bill correct. And every time I call the servicer, I'm getting different answers. They say they're going to do something, and they never do it. And if they do it, they don't do it correctly," Lawton said.
Larry Hennis is 68 years old, and he currently owes $121,000—double the original $60,000 he borrowed in the early 2000s. His higher education dreams were set aside when his wife was diagnosed with cancer; caring for her meant falling behind on his student loan payments.
"There's no provision for life happening," Hennis said. "Any lender would work with you in those circumstances, not these guys."
Hennis spent years as his wife's primary caretaker and never had the opportunity to finish his degree. He ultimately went into default, which added fees to his balance on top of the interest that was accruing.
"Even if you're making monthly payments for years at a time, your balance can still balloon on top of you. And the interest is really high for a lot of these folks," said Michele Zampini, the senior director of college affordability at the Institute for College Access and Success.
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Older borrowers have seen many changes in how student loans are managed. Income-driven repayment plans were introduced in 1994, and those plans have since been changed, added, or eliminated. In 2010, the federal government took over all student loans. Additionally, balances are sometimes sold or transferred to different servicers, adding to the confusion.
"People are struggling to navigate a bureaucratic nightmare. They're struggling to navigate a system that has very few resources available to them," Zampini said.
Borrowers can apply for income-driven repayment plans now, but some elements of those plans are currently on pause due to court injunctions. For anyone with student loan debt, it is advisable to keep personal records of payments made and communications regarding loans.
