Bird & Van Dyke, Inc. - A Professional Law Corporation
Contact us for a Free Initial Consultation | Se Habla EspaƱol
Stockton 209-390-8877
Tracy 209-800-8962

Seniors seek debt relief from burden of student loans

Many adult students in California have returned to college to seek a new degree or to complete a course of study abandoned long ago. Others are there to acquire new skills that can help them compete in today's workforce. While continuing one's education is always a sound personal decision, the choice to fund those studies using student loans can be a questionable financial choice. When those loans come due, many older Americans will find themselves in need of debt relief as a result.

When making the choice to go back to school, it is imperative to sit down and go over the numbers, both concrete and projected. If an individual's retirement is not adequately funded at the time that this new debt is acquired, it is possible that student loan payments could pose a significant burden to the retiree's monthly budget. In making these decisions, one consideration is the age at which the individual is expected to complete his or her student loan payments. Another factor is the projected earnings of the individual leading up to retirement.

In some cases, senior citizens will find themselves on the hook for student loan payments for loans they co-signed for children or grandchildren. For those who have not taken on this financial responsibility, it is worth the time to sit down with a financial planner and determine if it financially feasible to take on the risk of future loan payments. This is especially true in light of the fact that student loans are rarely discharged in bankruptcy and are eligible for garnishment of Social Security payments. Although the guidelines are stringent, there is a hardship exception to the general rules that the loans cannot be discharged.

As with all financial decisions, the choice to borrow for one's education should be made with a careful approach and an idea of all possible ramifications. Going back to school can be incredibly rewarding for California residents. However, doing so at the risk of future financial strain and the need for debt relief is a decision that must be carefully considered.

Source:, "College debt isn't just for kids: More older Americans saddled with student loans," Mila Koumpilova, Dec. 13, 2012

No Comments

Leave a comment
Comment Information
Email Us Today

Contact Bird & Van Dyke

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Review Us

Stockton Office
2111 West March Lane, Suite B 300
Stockton, CA 95207

Phone: 209-390-8877
Fax: 209-478-9954
Stockton Law Office Map

Tracy Office
1138 Parker Avenue, Unit B
Tracy, CA 95376

Phone: 209-800-8962
Fax: 209-478-9954
Tracy Law Office Map