Unpaid student debt can follow you into adulthood
Post date: Sep 17, 2014 12:33:45 PM
Concerned whether student loan debt may follow you into your adult years? You should be.
According to data from the Federal Reserve Bank of New York, an estimated two million Americans age 60 and older are in debt from unpaid student loans, the New York Times reports. The Federal Reserve Banks' August 2014 “Household Debt and Credit Report” said the
number of aging Americans with outstanding student loans had almost tripled from about 700,000 in 2005; some debt was from older loans for personal education and other debt was more recent borrowing to help pay for college for other family members.
The U-M Office of Financial Aid asks students to Be Smart About Borrowing and borrow only what is necessary to achieve the goal of a U-M college education. Consider how you spend money and how you can save to avoid borrowing:
Stretch your dollars
- Review your lifestyle. Trim costs. Consider needs vs. wants.
- Consider part-time employment to stretch your dollars without borrowing
- Stretch your dollars: Check out the U-M Payment Plan for Fall-Winter semesters
- Use personal or family assets when possible before considering a loan
- Considering summer school? Take classes closer to home and incur less cost or consider a roommate.
In addition, create a budget for yourself that will help you manage your spending daily and throughout the month. For more, visit our page on budgeting basics.