The ongoing financial issue of student debt is on the rise across the nation and is affecting senior citizens now more than ever. According to Blake Ellis, Senior Writer at CNNMoney, in his article “Senior Citizens owe $18 billion in student loans,” America’s age 65 and older are losing a large percentage of retirement funds due to this problem. This is a topic that brings up many hard decisions for anyone thinking of continuing their education, due to the idea that this will affect the rest of one’s life. This is especially so for people living in New York since it’s rated as the state with the highest taxes.
People attend college for the sole purpose of gaining more knowledge in possible fields of work that interest them. The idea of securing money for college and applying for loans can seem time-wasting and can be very stressful. All the time that goes into trying to get loans can become annoying, especially if you know the financial issues you’re going to face in the future. Interest rates on student loans have risen higher than usual, and a large population isn’t even aware.
Undergraduate interest loans are 4.66%, graduate interest loans are 6.21%, and parents/professional students’ loans are 7.21%. Parents or professional students have the most affected rates. On top of loan interest, parents already have many other expenses to care for, like home payments, their children, and car payments. New York is fourth on the list of mortgages. Paying $300,000+ a year on top of all the other bills that go along with home ownership can be beyond stressful. Next, expenses spent on kids are very high due to the fact that they can’t provide for themselves yet. Minors need to be provided the necessities: shelter, food, and water, which are provided by the parents. Since many parents allow their kids to buy cars when their age allows them to, they face car insurances which are most expensive between ages 16 and 20. New York currently has an average student car insurance of $6,216.
Unless you do not go to college or have many resources, this debt is not escapable. The dictionary defines retirement as a pension or other income on which a retired person lives. If a person has more student loans to pay off than retirement funds, then what money will they actually have for keeps? Retirement was made so people could just relax after years of hard work. If the rate goes up as it is, then people won’t be able to afford not working.