CFPB Releases Report on Impact of Student Debt on Older Adults
Fri 22 Sep, 2017 / by McIntyre & Lemon / Client Alerts
09/22/17 – Last month, the Consumer Financial Protection Bureau (CFPB) published a follow-on report highlighting increasing student loan debt among older consumers, as well as how the increased debt impacts their financial security.
This report builds on a report published in January, providing an initial snapshot of older consumers and student loan debt. The snapshot focused on the scope and growth of student debt among older borrowers (ages 60 and older).
In the latest report, the CFPB documented how changes in the availability of borrowing and repayment options may affect the long-term financial well-being of older consumers. The report contains state-level data that shows the changes between 2012 and 2017 in the number of older borrowers, the median amount owed, and the proportion and number of older borrowers in delinquency.
This new data demonstrated a significant growth of student debt among the older population in each state and the proportion of older borrowers behind on their payments.
The CFPB found that:
- The number of older borrowers increased by at least 20 percent in every state, including the District of Columbia and Puerto Rico, and the number of older borrowers increased by 46 percent or more in half of all states.
- In more than three-quarters of states, the median student loan balance of older borrowers increased by more than $1,000, and the total outstanding student debt held by borrowers over age 60 increased by more than 50 percent.
- In all but five states, the proportion of older borrowers in delinquency increased.