dearJulius.com

When student loans become your midlife crisis


By Richard Barrington, MoneyRates.com

When you think of student loans, do you think of them as a young person's problem?

Think again. According to data from the U.S. Department of Education, more student debt is currently owed by people aged 35 and older than by those under 35. For many Americans the burden of student loan debt has lingered into middle age.

Consider this a modern definition of a mid-life crisis: juggling competing demands from your past and your future by trying to pay off student loans while also starting to think seriously about how to save enough for retirement.


Two generations of student loans under one roof

The figures from the Department of Education show that over $800 billion in student loan debt outstanding is owed by people aged 35 or older. This includes over a quarter of a trillion dollars owed by people aged 50 and over. That's righ -- people old enough for AARP memberships are still tackling a problem generally associated with millennials.

By age 50, people are often grappling with how to send their kids to college. This has created the very realistic scenario where a family has two generations worth of student loans outstanding under the same roof. Is it any wonder that older Americans generally are behind on saving for retirement?

A few things have contributed to this problem:

Full or partial deferrals of student loan payments may make the burden easier on young adults, but with interest charges it can make for a greater debt load later on. During the Great Recession, many adults decided to go back to school to try to improve their career prospects, and with rapidly changing technology and business models, refreshing skills and credentials remains an ongoing career imperative. Parents and even grandparents may cosign loans for younger family members, and then find themselves stuck with the debt when the borrower defaults.

If you are concerned with student loan debt lingering long enough to interfere with your saving for retirement -- or even with retirement itself -- you need a plan for systematically attacking the problem and managing debt.


Tips for older Americans paying off student loans

Here are eight tips for older Americans paying off student loans:

Take stock of your loans outstanding. Think of this as a kind of inventory so you know where you stand. Make a list of all your student loan balances, their monthly payments, interest rates and how long you have to go to repayment.

To forgive is divine… but being forgiven might be even better. If you have a federally-backed student loan, see if you qualify for a loan forgiveness program. For example, if you have been on an income-based repayment program and have been paying off your loan for 20 years or more, you may qualify to have the remaining balance forgiven. There are also special forgiveness programs for some teaching and public service jobs.

Triage your spending. Once you know the scope of the problem and whether any relief is available, look for extra room in your budget to pay down debt. Start by examining your spending. Distinguish between which expenses are actual necessities, and which are simply habits that you could break. Prioritize to find at least some expenses you could cut to make room for additional student loan payments.

Accelerating loan payments should save money in the long run. As an incentive for additional student loan payments, remember that making extra payments will not just pay your loan down sooner, but should also be cheaper in the long run because it reduces the total interest expense you incur.

Decide where student loans fit in your hierarchy of debt. While paying down student loans is important, they may be a relatively cheap form of debt compared to things like credit card debt. Put any extra debt repayments toward your most expensive sources of debt first.

Don't let extra payments get in the way of qualifying for a 401(k) match. Deciding between student loan repayment and retirement saving is tough, especially as you move into middle age. One clear-cut choice is that if you can make 401(k) contributions that qualify for an employer match rather making than extra student loan repayments, chances are the value of that match may far exceed the interest saved from paying down your loan faster.

Evaluate refinancing options carefully. If you receive refinancing offers, evaluate them with a long-term view in mind. Refinancing options that reduce your immediate payments are likely to prolong your debt and increase your eventual interest expense.

Factor student loan repayments into your retirement planning. When you enter your retirement savings into a retirement calculator, be sure to subtract the amount of any debt you have outstanding. That debt is a drain on future income, so to some extent it may offset your retirement savings.

It's okay to be nostalgic about your college days, but paying student loans well into middle age should not be part of reliving your past.



Made with in NYC
Name

4th of July,7,Abu Dhabi,2,Accessories,84,Acne,3,Adventure,32,Adventure Travel,638,Advice,283,Africa,26,African Food,2,AIDS,1,Air Travel,150,Alabama,5,Alaska,20,Alberta,1,Alcohol,4,All About Beer,1,All About Wine,2,Alternative Treatments,4,America,77,American Food,5,Amsterdam,2,Android,11,Anguilla,3,Animal,367,Animal Health,1,Animals,69,Anniversary,1,Anniversary Cake,11,Antarctica,7,Antigua,3,Appetizers & Snacks,2,Apple,11,Apps,16,Argentina,15,Arizona,19,Arkansas,2,Armenia,1,Asia Travel,47,Asian Food,7,Asthma,4,Athens,3,Austin,8,Australia,92,Australian Food,1,Austria,13,Autism,1,Auto Insurance,1,Auto Show,52,Autos,203,Azerbaijan,1,Baby Shower Cake,29,Back Pain,25,Bahamas,13,Balance Work & Life,50,Banana Cakes,2,Bangladesh,8,Barn Finds,1,Bathroom,43,Be a Better Manager,33,Beach Travel,58,Beards and Shaving,29,Beef Recipes,7,Belarus,1,Belgium,9,Belize,15,Bermuda,5,Best Products,1,Better Partner,40,Beverages,3,Bhutan,9,Bills to Pay,35,Birds,4,Birth Control,1,Birthday Cake,109,Blue Lagoon,2,Blueberry Cake,11,Bolivia,3,Books,2,Botswana,3,Brazil,38,Bread,11,Breads,1,Break Room,12,Breakfast & Brunch,6,Breakup,19,Breakups,3,Broken Hearts,5,Brownie,8,Brunei,1,Budget Travel,97,Bundt Cake,30,Business Skills,102,Butter Cake,52,Buying,1,By Region,3,Cake Decorating,113,Cakes,54,California,109,Cambodia,4,Camera,6,Canada,80,Cancer,73,Car Shows,1,Car Tech,2,Caramel Cake,5,Career,86,Career Advice,298,Career Choice,125,Career Growth,180,Career Paths,24,Career Problem,8,Caribbean,45,Caribbean & Mexico,5,Carrot Cake,22,Cats,49,Celebrity,17,Celebs,1,Ceremonial Cake,9,Certified Pre-Owned Vehicles,1,Cheese Recipes,4,Cheesecakes,251,Chicago,7,Chicago Auto Show,2,Chicken Recipes,14,Chiffon Cake,5,Children's Health,21,Chile,7,China,21,Chocolate Cake,395,Christmas,35,Christmas Cake,23,Christmas Travel,14,Classic Cars,39,Cleaning Tips,144,Clinical Practice,1,Clothes,1,Cocktail Recipes,2,Coconut Cake,21,Coffee,1,Coffee Cake,15,Coliseum,1,Colombia,18,Colorado,32,Columbia,3,Communication,2,Companies,2,Compassion,2,Computing,16,Connecticut,4,Consumer Electronics Show,5,Cookies,10,Cooking,8,Corporate Travel,2,Costa Rica,13,Country Travel,249,Creative,309,Creative Idea,22,Creative Ideas,37,Croatia,15,Cruiser Travel,16,Cuba,18,Cultural Travel,66,Cupcake,322,Customs & Classics,2,Czech Republic,6,D.C.,2,Dandruff,1,Dating,18,Dating Advice,73,Dating Advice for Women,22,Dating Tips,13,Decor,23,Decorating Ideas,181,Delaware,1,Demotivational,636,Denmark,12,Dental Health,26,Dentistry,1,Depression,24,Desert Travel,1,Desserts,3,Detroit Auto Show,4,Diabetes,25,Diet,131,Dining Out,3,Dinner,14,Disease,116,Divorce,15,DIY,112,DIY Fashion,31,Dogs,156,Doughnuts,5,Dress,23,Drink,27,Drinks,1,Drinks & Cocktails,4,Driving,3,Drugs,3,Dubai,15,Ears,2,East Africa,4,Easter,1,Easter Island,1,Easter Travel,1,Eco Travel,18,Ecuador,7,Education,87,Eggs,3,Egypt,4,Electronics,4,Electronics and Gadgets,2,Emirates,1,England,13,Entertainment,148,Enthusiasts,131,Entrepreneurship,40,Estonia,2,Eswatini,1,Ethiopia,2,Europe,110,European Food,8,Exercises,51,Eye Health,28,Facts,284,Fall Travel,43,Family,16,Family Travel,128,Faroe Island,1,Fashion,126,Fashion for Kids,2,Fashion for Man,12,Fashion for Woman,31,Fat Loss,91,Father's Day Cake,4,Father's Day Travel,1,Featured,207,Features,1130,Festival Travel,25,Fiji,6,Finance,4,Finland,16,Fish & Seafood,13,Fitness,746,Fitness & Exercise,219,Florida,69,Food,136,Food and Drink,14,France,37,Frankfurt Motor Show,2,Free Travel,3,French,6,French Polynesia,5,Friendship,40,Fruit & Veggie Recipes,8,Fruitcake,70,Fruits,4,Fuel Economy,1,Funny,546,Gadgets,31,Galapagos,3,Games,12,Garden,24,Gardening,276,Gearheads,1,General,7,Geneva Motor Show,3,Georgia,14,Germany,18,Get Healthy,63,Ghana,2,Girlfriend Grooming,10,Google,15,Graduation Cake,2,Gratitude,11,Greece,37,Green Living,5,Greenland,1,Grooming,89,Guatemala,2,Hair,52,Hair Care,22,Hairstyle,65,Halloween,29,Halloween Cake,12,Halloween Travel,9,Happiness,19,Hawaii,53,Hayden Panettiere,1,Headache,22,Health,481,Health & Fitness,300,Health Care,466,Health Insurance,1,Healthcare Tech,6,Healthy,12,Healthy Eating,186,Healthy Habits,159,Healthy Living,179,Hearing,1,Hiking Travel,63,HIV/AIDS,4,Holiday Travel,28,Holland,1,home,31,Home & Garden,205,Home and Decor,484,Honeymoon Travel,128,Hong Kong,13,Horoscope,31,Hot Rod Power Tour,1,Hotels,71,Housekeeper,8,Hungary,3,Ice cream Cake,21,Iceland,41,Idaho,4,Ideas,11,Illinois,13,Imports,1,Impress a Girl,20,Impress Women,4,Independence Day Travel,1,India,36,Indiana,5,Indonesia,13,Indoor Gardening,69,Industry,5,Inspiration,58,Insurance,5,Internet,19,Internship,8,Interview Skills,37,Investing,12,iPad,2,iPhone,6,Iraq,1,Ireland,36,Island,60,islands,2,Israel,9,Italy,56,Jamaica,8,Japan,44,Jealousy,2,Job Search,47,Jordan,6,Just For Fun,2,Kansas,6,Kentucky,2,Kenya,2,Kids & Pets,10,Kitchen,67,Koala,1,Korea,2,Kyrgyzstan,1,Lamb,2,Laptops,4,Latin America,3,Latin American Food,1,Latvia,1,Laundry,6,Layer Cake,95,Leadership,44,Legs,1,Lemon Cake,18,Life,1,Life Hacks,244,LifeStyle,731,Lithuania,2,London,24,Long Distance Relationship,24,Los Angeles Auto Show,14,Louisiana,9,Love,130,Lowa,4,Lunch,5,Luxembourg,1,Luxury Travel,35,Maine,6,Maintenance,3,Makeup & Beauty,11,Malaysia,1,Maldives,15,Malta,2,Mango Cake,3,Marketing,10,Markets,11,Marriage,97,Marshmallow,3,Maryland,6,Massachusetts,9,Massage,5,Mauritius,6,Meditation,29,Men & Women,18,Men's Health,14,Mental Health,294,Mexico,74,Miami,13,Michigan,5,Microsoft,6,Middle Eastern Food,2,Mind,3,Mississippi,2,Missouri,7,Mobile,22,Moldova,1,Monaco,1,Money,2,Money & Career,21,Monkey,1,Montana,12,Morocco,20,Mother's Day Travel,1,Motivation,2,Motorcycles,106,Motorsports,2,Mousse,2,Muffins,9,Mug Cake,14,Multiple Sclerosis,1,Muscle Cars,4,Muscle Cars & Hot Rods,3,Muscle Gain,2,Myanmar,9,Namibia,4,Nature,4,Nature Travel,102,Nepal,6,Netherlands,11,Nevada,23,Nevis,1,New Bikes,2,New Car Deals,1,New England,5,New Jersey,2,New Mexico,6,New Year Fashion,6,New Year's Day Travel,6,New York,55,New York Auto Show,3,New York City,20,New Zealand,47,Newfoundland,1,Newlyweds,4,News,334,Nicaragua,2,North America,11,North Carolina,6,North Dakota,1,North Ireland,1,Northern Ireland,1,Norway,20,Nutrition,447,Occasional Travel,9,Oceania,1,Offbeat,613,Ohio,6,Oman,5,Online Date Tips,2,Operating Systems,2,Oral,4,Oregon,10,outdoor,3,Ownership,61,Pain,24,Painting,16,Pakistan,2,Panama,5,Pancake,19,Panda,1,Panna Cotta,3,Paraguay,1,Parenting,370,Paris,23,Paris Motor Show,4,Pasta,2,Pastry,7,Pebble Beach Concours d'Elegance,2,Penguin,4,Pennsylvania,10,Personal Finance,164,Peru,21,Pets,145,Phoenix,1,Photo Feature,1,Pie,27,Plum Cake,1,Poke Cake,10,Poland,3,Popular Ingredients,26,Pork Recipes,7,Portable Media,14,Portugal,21,Pound Cake,55,Prague,1,Pregnancy,72,Premium,1,Printer,2,Protein Bars,1,Psychology,1,Pudding,9,Puerto Rico,7,Pumpkin Cake,45,Qatar,6,Quick & Easy Recipes,11,Real Estate,72,Recalls,4,Recipe,1097,Recipes,52,Recipes & Meal Ideas,3,Recipes By Course,5,Relationship,167,Relationship Advice,180,Relationship Advice for Men,23,Relationship Advice for Women,27,Relationship Problems,58,Relationship Secrets,14,Relationships,137,Research,94,Resort,11,Restaurants & News,13,Resume,11,Retirement,10,Reviews,1,Rhode Island,2,River Travel,2,Road Trips,49,Romania,4,Romantic Getaways,15,Rome,5,Russia,16,Safety,5,Saint Lucia,1,Saint Patrick's Day Travel,1,Salad,6,San Miguel de Allende,1,Scotland,10,Seasonal,56,Seasonal Travel,59,Security,9,Self Help,14,Self-Care,3,SEMA Show,5,Senior Relationship,2,Sex,7,Sexual Health,19,Shanghai Auto Show,7,Shaving,1,Sheet Cake,20,Shirt,4,Shoes,1,Shopping,10,Shots & Shooters,1,Side Dishes,4,Sightseeing Tours,2,Singapore,18,Ski Resorts,10,Skin Care,47,Sleep,62,Slovenia,6,Small Business,163,Smartphone,28,Smile,1,Smoothies & Juices,3,Snacks,1,Social Media,44,Solo Travel,24,Solomon Islands,1,Somoa,1,Soth Africa,1,South Africa,14,South America,3,South Carolina,4,South Dakota,5,South Korea,3,South Pacific,2,Space Travel,14,Spain,33,Special,46,Special Cake,579,Special Feature,113,Special Features,485,Sponge Cake,15,Sports and Exotics,4,Sports Cars,8,Spring Travel,23,Squirrel,1,Sri Lanka,6,Strawberry Cake,22,Stress Relief,35,Stroke,2,Student Travel,1,Style Guide,25,Summer Travel,53,Summer Vacation,8,Supercars,10,Sweden,19,Swiss Alps,1,Switzerland,20,Tahiti,1,Taiwan,3,Tanzania,1,Tarts,12,Taxes,7,Teas,2,Tech,89,Tech Advice,12,Tech Education,7,Tech Hacks,19,Tech Updates,2,Technology,12,Teen Advice,4,Teeth,5,Tennessee,6,Texas,57,Thailand,31,Thanksgiving Cake,4,Thanksgiving Travel,5,Therapy,3,Things to Do,165,Tibet,2,Tips,264,Tips & Tricks,6,Tokyo Motor Show,2,Tools & Skills,16,Top Stocks,1,Traditional Cake,4,Train Travel,23,Training,1,Transportation,22,Travel,205,Travel Advice,64,Travel Apps,1,Travel Guide,40,Travel Tips,149,Trends,7,Trucks,1,True Health,5,Tunisia,2,Turkey,10,Turkish,1,Tuscany,1,TV,2,UAE,10,UK,40,Ukrine,1,Understanding Women,28,Urban Travel,47,Uruguary,1,USA,629,Utah,12,Uzbekistan,1,Vacation Travel,245,Valentine's Day Cake,7,Valentine's Day Travel,1,Vanilla Cake,17,Vegetables,3,Vehicle Travel,2,Venezuela,1,Vermont,4,Victoria Falls,1,Vietnam,5,Virginia,5,Waffles,3,Washington,15,Washington DC,20,Web & Social,17,Wedding,14,Wedding Cake,549,Weddings,60,Weddings Travel,4,Weight Gain,23,Weight Loss,468,Weird,172,Wellness,75,West Indies,2,Wi-Fi,2,Wildlife Travel,13,Winter Travel,56,Wisconsin,5,Women Lifestyle,23,Women's,55,Women's Health,173,Work Environment,77,Workouts,81,Worldwide,155,Wyoming,2,xxx,1,Yemen,1,Yoga,58,YouTube,3,Zadar,2,Zambia,3,Zimbabwe,4,
ltr
item
Home Magazine: When student loans become your midlife crisis
When student loans become your midlife crisis
https://3.bp.blogspot.com/-PbACgboQ6RA/XHKInag4leI/AAAAAAAAOZg/C0gyZEk5P4QIh3THZxkt4Ch8rdSJ6O3QwCLcBGAs/s1600/When%2Bstudent%2Bloans%2Bbecome%2Byour%2Bmidlife%2Bcrisis.jpg
https://3.bp.blogspot.com/-PbACgboQ6RA/XHKInag4leI/AAAAAAAAOZg/C0gyZEk5P4QIh3THZxkt4Ch8rdSJ6O3QwCLcBGAs/s72-c/When%2Bstudent%2Bloans%2Bbecome%2Byour%2Bmidlife%2Bcrisis.jpg
Home Magazine
https://home.dearjulius.com/2019/02/when-student-loans-become-your-midlife.html
https://home.dearjulius.com/
https://home.dearjulius.com/
https://home.dearjulius.com/2019/02/when-student-loans-become-your-midlife.html
true
3672986080801762734
UTF-8
Loaded All Posts Not found any posts VIEW ALL Read More Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share to a social network STEP 2: Click the link on your social network Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy