When we think of student debt we envision a young person in their 20s or early 30s, starting out in life. They’re establishing themselves in their careers, marrying and starting families, all the while struggling with overwhelming student debt.
Would you be surprised to know that close to 2 million Americans 60 years of age and older owe a total of $36 billion in student loans, according to the Federal Reserve Bank of New York. And, they’re having difficulty making the payments. In fact approximately 10% of student loans held by people 60 and older are delinquent. Student debt is not just a young person’s problem. It impacts the entire family.
Younger Baby Boomers aren’t faring much better. According to the Federal Reserve Bank 50 plus Boomers owe $104 billion in student loans, 11% of the total outstanding balance. In total all Baby Boomers account for 17% of $1.2 trillion in outstanding student loan debt, which is a 30% increase since 2005. How is this possible? Some Baby Boomers:
- Are still paying back student loans that they took out in the ‘70s.
- Have taken out new student loans in order to go back to school after layoffs or downsizing because they found it difficult to find jobs.
- Are paying for their children’s college education.
As a result many families are now dealing with two generations of debt. Parents are trying to pay off their own student loans and pay for their children’s student loans. And the cost of higher education is still getting higher.
The time to plan for your child’s future is now. You can avoid the cycle of student debt with Insurance for Children’s Child Plan. For as little as the cost of two lattes a day Child Plan will have enough money to pay for any education program worldwide; not only those approved by the government of Canada. And it can be used even if your child chooses to start their own business rather than attend a post secondary education or to buy a house, or as a source of income to help raise their kids. Contact an Insurancefor Children.ca Family Advisor today and find out how. You can avoid the cycle of overwhelming student debt for your child!