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April 1, 2021 – WASHINGTON— A new analysis by AARP Public Policy Institute (PPI) found that student loan debt is a staggering problem across generations: Americans 50 and over held $ 336.1 billion, or 22%, of the $ 1.6 trillion. dollars of 2020. In 2004, older borrowers accounted for 10% of student debt of $ 455.2 billion.
“Student loan debt is becoming a burden on all generations, trapping more seniors and delaying or crushing retirement plans for many,” said Gary Koenig, AARP Vice President, Financial Security. “Paying for higher education was never meant to last a lifetime. That’s why AARP helps individuals take charge of their debt and financial security. ”
PPI analysis found that millions of borrowers – including as many as seven million people aged 50 and over – have had their payment suspension extended until September due to the pandemic. However, about a fifth of student debt – over $ 300 billion – is not included in the current suspension.
Older adults have student loan debt due to their own educational activities, borrow to finance their children’s education, or co-sign private student loans. Further, AARP Research shows that a quarter of co-signers aged 50 and over have to make payments because the student borrower does not.
To Help Individuals Manage Student Debt, AARP and Savi Announce Today a new student loan repayment take out tool to help individuals identify the best payment options, with special features for people aged 50 and over. The Savi Student Loan Repayment Tool provides a free, personalized assessment of student loan repayment options. It can also help individuals identify job-specific loan remission opportunities, and help with document preparation and filing.
“We have seen the generational impact of student debt and are delighted to be working with AARP to help older borrowers access immediate and long-term relief.” said Tobin Van Ostern, co-founder of Savi. “It’s about changing the narrative and breaking free from the burden of student debt for those who need it most.”
Any adult with a student loan can use the online tool free of charge, after registering for AARP.org/studentloans. AARP worked with Savi to customize the tool for older borrowers, and includes:
- Options for dozens of national and state reimbursement and forgiveness programs.
- Easily sync federal and private loans from all loan managers with industry standard security.
- Support from experts in student loans.
- Access to free educational resources.
Additionally, AARP worked with Savi to help provide this tool to low-income seniors at no cost through the AARP Foundation. With older adults making up the growing age group of student loan borrowers, AARP and Savi are committed to helping them access the tools they need to tackle student loans.
AARP’s collaboration with Savi does not imply or promote the refinancing of student loans of any kind and only supports the use of existing student loan options.
AARP is the nation’s largest non-profit, non-partisan organization dedicated to empowering people 50 and over to choose their lifestyle as they age. With a national presence and nearly 38 million members, AARP strengthens communities and advocates for what matters most to families: health security, financial stability and personal development. The AARP also produces the most widely distributed publications in the country: AARP The Magazine and AARP Bulletin. To learn more, visit www.aarp.org, www.aarp.org/espanol or follow @AARP, @AARPenEspanol and @AARPadvocates, @AliadosAdelante on social media.
Savi is a Washington, DC-based social impact tech start-up that is working to solve the student debt crisis affecting 46 million borrowers by helping them discover new options for repayment and cancellation of debt. ready. Founded by longtime student loan experts and advocates, Savi is a utility company that has identified over $ 200 million in projected forgiveness for student loan borrowers. Savi works with employers, member organizations, and financial institutions to provide our service as a unique student loan benefit.