A More Nuanced Approach to Student Loan Forgiveness

Photo Credit: QuinceCreative

The median balance of a retirement-aged American’s 401(k) savings is a mere $58,000. Can we imagine a student loan forgiveness package that directs extra attention to low and moderate wealth borrowers aged 60 years and older? A $40,000 student loan debt at age 30 is unfortunate; at age 60 it may be tragic.

Consider this idea: If a “base” student loan forgiveness amount is $10,000, a pre-retiree borrower (someone between 55 years old and their Social Security full retirement age) could receive $15,000, freeing up cash flow to add to their retirement savings. An already retired person could have their debt completely extinguished, subject to an income limit.



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