Student loan debt is not solely a concern for younger generations; millions of older Americans are also grappling with significant financial burdens as they approach retirement. Recent data from Federal Student Aid reveals that borrowers between the ages of 50 and 61 have the highest average student loan balance of any age group, sitting at $48,203. Alarmingly, over half of these individuals, approximately 3.6 million, owe $20,000 or more.
These findings underscore the plight of Generation X—frequently labeled the “forgotten generation”—as they edge closer to retirement still encumbered by student debt. The situation is exacerbated by the accumulation of interest over decades, making it increasingly challenging for these borrowers to pay down their balances.
The urgency of their financial predicament may soon intensify, especially for those who have had difficulties keeping up with payments. The Trump administration has announced its intentions to resume wage garnishment, thus ending the pandemic-era suspension of this practice. As of late September, total student loan debt in the United States reached about $1.7 trillion, a figure that has more than tripled from $516 billion in 2007.
A closer look at the data indicates that approximately 6.4 million borrowers aged 50 to 61 collectively owe over $308 billion in federal student loans. This age group’s average debt is more than three times that of borrowers aged 24 and younger, who owe an average of $14,242. The group aged 35 to 49 follows closely, with an average balance of $45,295 and about $675 billion in total student loan debt shared among roughly 15 million borrowers.
Geographically, Washington, D.C., stands out with the highest average student loan balance in the nation at $55,794 per borrower. This trend is largely attributed to the capital’s status as the most educated region, housing a substantial number of residents with advanced degrees. Maryland and Virginia are also among those with high average balances, both exceeding $40,000. In fact, Georgia and Florida follow suit with averages of $43,273 and $40,692 respectively, despite having average educational attainment levels.
Concerning borrowers with particularly high balances, more than 70 percent owe less than $40,000, but a significant number—about 3.8 million—are burdened with $100,000 or more in student debt. This represents a staggering 60 percent increase since 2017, with nearly one-third of these borrowers, around 1.2 million, owing $200,000 or more. Those who have pursued postgraduate degrees are notably more likely to end up with six-figure student loans.
This challenging landscape calls for a reassessment of how student debt impacts not just younger borrowers but older generations as well. As the economy and policies continue to evolve, it is crucial for solutions to be sought that could alleviate the financial strain faced by millions of Americans, allowing them to enjoy a more secure retirement.