A 60-year-old took out student loans to help her kids succeed. She's facing retirement with a $156,000 balance.
A 60-year-old woman is facing retirement with $156,000 in federal parent PLUS student loan debt incurred for her children's education. The story highlights the financial strain on older parents and the broader implications of rising student debt in the U.S.
Why it matters
This case illustrates the long-term financial burden of parent-funded student loans and the challenges of managing such debt while approaching retirement.
Nansi Lynch has $156,000 in student loans that she took out to help her kids get a college education. Jonathan Pitts-Wiley for BI Nansi Lynch never went to college. But she's approaching retirement with a $156,000 student-loan balance. "I don't get rid of it until I turn 75 years old," Lynch said. "I've never heard of something so disastrous in my life." The 60-year-old took out federal parent PLUS loans, which carry the highest federal interest rate of 9.07%, for both of her children. Previously, parents could borrow the full cost of attendance. In July, the Trump administration imposed a lifetime borrowing cap of $65,000 per dependent for new parent PLUS loans, in an attempt to address spiraling debt. Under her pre-existing income-driven repayment plan, Lynch's monthly student-loan payments were $238. Lynch worries her payments will increase when her forbearance ends early next year.
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