Student Loan Debt for Those Over 62 Compared to Their Peers Reveals Surprising Trends

Group 1 - As of September 2025, approximately 3.1 million federal student loan borrowers are aged 62 or older, holding a total of $136.9 billion in student loan debt, which represents about 8% of the nearly $1.7 trillion in outstanding federal student loan debt [1][9] - The average student loan balance for borrowers aged 62 and older is around $44,161, making this age group the third-highest in terms of average loan balance compared to other age groups [1][9] - Many borrowers in this age group are nearing or already in retirement, making it challenging to manage loan payments on a fixed income, which is typically lower than pre-retirement wages [5][9] Group 2 - A quarter of borrowers aged 60 and older have at least one payment that is past due, indicating financial strain among this demographic [5] - Retired borrowers receiving Social Security benefits risk having their payments garnished if they default on their loans, with the potential to lose up to 15% of their monthly checks if they do not make payments for over 270 days [6][9] - Experts recommend that borrowers approaching retirement with outstanding student loans consider delaying retirement or taking part-time work to manage their debt [7] Group 3 - Retired borrowers can explore different repayment plans to lower their monthly payments, such as income-driven repayment plans, and can also request forbearance or deferment from their loan servicer [8] - Even with the current pause on garnishments, missed payments can negatively impact credit scores, making it more difficult to regain good standing [9] - Options for borrowers who default include requesting loan consolidation or rehabilitation to remove the default status and resume payments [9]