You know, turning 40 in today’s world isn’t the same as it was back in the day! 😎 We’ve got Botox and Ozempy in the cabinet and Kris Jenner’s plastic surgeon on speed dial. Don’t tell the hubs we’ve been sending creditor calls to voicemail. 🥳📵
Of course, we’re kidding about the creditor calls. We’re responsible AF (most days). 🤭 But getting older sometimes means the debt chains jingle just a little bit louder…especially in the student loan department. 🥴💸
Here’s Five Fast Facts on student loan default demographics:
- 👴🏻 40, 50, Fab - People falling behind on student loans are getting older. The average borrower in default is now close to 40 years old, and adults over 50 are facing growing risks too. Turns out student debt is sticking around much longer than many expected.
- ⏸️ Pandemic Pause - During the pandemic, people didn’t have to make student loan payments for a while. But after payments started again, millions of borrowers struggled to keep up. As a result, more than 3.5 million people recently fell into default.
- 🫨 Bad Bounce Back - Delinquency rates on student loans are now climbing back toward pre-pandemic levels. Research shows defaults are happening nationwide, though borrowers in the South are more likely to fall behind. Many of those now struggling had previously stayed current on their loans before the pandemic.
- Digging Through Debt - Student loan defaults are also now colliding with other financial problems. Borrowers struggling with education debt are often missing payments elsewhere too, from credit cards to mortgages. Many of the largest balances are now held by Gen X borrowers, including parents who borrowed for their children’s education.
- 🎓 Bait & Switch - Defaulting on student loans can lead to serious penalties, like losing part of your paycheck or tax refund. Now, millions of borrowers are also being forced to switch to new repayment plans because the SAVE program is ending. Experts worry the higher payments could push even more people into default.
🔥Bottom line: Getting older doesn’t take the debt away. Unfortunately, aging doesn’t come with a money tree, either. Looking for a new job? Have you Googled yourself lately? You probably should, since a lot of recruiters are treating it like your second resume. Find out everything you need to know right here!
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