Millennial and Gen Z college graduates aren’t the only ones struggling to pay back their student loans. Student loan debt among adults age 60 and up has increased sixfold over two decades. Currently, about 3.5 million people age 60 and older in the U.S. hold more than $125 billion in student loan debt.
As more seniors face retirement burdened with student loan payments, many are looking for ways to repay what they owe. Fortunately, there are programs and resources that can help, including student loan forgiveness for seniors, repayment plans that can lower monthly payments, and special strategies for managing student loans in retirement. Read on to learn more.
Key Points
• Approximately 3.5 million people in the U.S. age 60 and up have more than $125 billion in student loan debt.
• The average student loan balance for those age 60 and up is $17,857 to $44,834.
• Seniors can explore loan forgiveness programs like Public Service Loan Forgiveness (PSLF) and state-specific forgiveness programs.
• Income-Driven Repayment plans that are based on discretionary income and family size could lower seniors’ monthly student loan payments.
• Seniors can reach out to advocacy groups like the Student Borrower Protection Center for help, resources, and information.
Understanding Student Loan Debt Among Seniors
Why are so many seniors struggling with student loan debt as they enter their golden years? Some may have taken out student loans to help their children attend college; others may still be paying off their own degrees; and some may be paying off student loans for their children and for themselves. Seniors may also be on fixed incomes that make it difficult to dedicate money to loan payments. According to a January 2025 analysis by the Consumer Financial Protection Bureau, the average student loan balance for those age 60 and up is $17,857 to $44,834.
That debt is taking a financial toll: Among borrowers over age 55, 30% can’t pay all their monthly bills, and 61% don’t have three months’ worth of emergency savings.
Federal Student Loan Forgiveness Programs
Forgiveness programs may help seniors cancel their remaining student loan debt after they make a certain number of qualifying payments. Some of these programs also help reduce borrowers’ monthly payments, making them more affordable
These are some of the forgiveness plans seniors may want to consider.
Income-Driven Repayment (IDR) Plan Forgiveness
March 26, 2025: The SAVE Plan is no longer available after a federal court blocked its implementation in February 2025. However, applications for other income-driven repayment plans and for loan consolidation are available again. We will update this page as more information becomes available.Income-driven repayment plans base a borrower’s monthly payments on their discretionary income and family size, typically resulting in lower monthly payments. By the end of the repayment period, which is 20 or 25 years, the remaining loan balance is forgiven.
While forgiveness under three of the four IDR plans has been paused, there is one IDR plan, called Income-Based Repayment, that is still proceeding with forgiveness .
The four IDR plans are:
• Income-Based Repayment (IBR). Payments for loans borrowed after July 1, 2014 are 10% of a borrower’s discretionary income over 20 years. For older loans, payments are 15% of discretionary income for 25 years. On the IBR plan, forgiveness is still proceeding at this time, since this plan was separately enacted by Congress.
• Pay As You Earn (PAYE). Under PAYE, payments are 10% of a borrower’s discretionary income over 20 years.
• Income-Contingent Repayment (ICR) Plan. With ICR, payments are calculated at 20% of a borrower’s discretionary income divided by 12, or the amount they would pay on a repayment plan with a fixed payment over 12 years, whichever is less. The ICR repayment term is 25 years.
• Saving on a Valuable Education (SAVE): As of March 2025, the SAVE plan is no longer available after being blocked by a federal court. Forgiveness has been paused for borrowers who were already enrolled in the plan, and they have been placed in interest-free forbearance.
Public Service Loan Forgiveness (PSLF)
Seniors with qualifying federal Direct loans who work full-time in public service and are employed by a government agency or a qualifying nonprofit organization may be eligible for Public Service Loan Forgiveness.
While working for an eligible employer, borrowers must also enroll in an IDR plan or the Standard Repayment Plan. After completing 120 qualifying payments, any remaining Direct loan balance they have is forgiven.
In March 2025, President Trump signed an executive order to limit eligibility for PSLF and requested an update to the program’s regulations. However, the executive order is being reviewed, and the PSLF program remains unchanged for now, according to the Federal Student Aid website.
Total and Permanent Disability Discharge
Seniors may qualify for a federal student loan discharge for their federal student loans if they are totally and permanently disabled. Total and Permanent Disability (TPD) discharge covers federal Direct loans, Federal Family Education loan (FFEL) program loans, and Federal Perkins loans, as well as the Teacher Education Assistance for College and Higher Education (TEACH) Grant, for those who received this grant.
You must complete a total and permanent disability (TPD) discharge application and documentation showing that you meet the requirements. The documentation must come from the U.S. Department of Veterans Affairs, the Social Security Administration, or an authorized medical professional. If you are approved for TPD, you will not need to repay the student loans noted above or fulfill your TEACH Grant service obligation.
State-Specific Forgiveness Programs
In addition to federal forgiveness programs, there are also state-based programs that seniors might qualify for. Here’s how to find and apply for them.
State-Based Loan Forgiveness Initiatives
Most states offer student loan forgiveness programs for residents. Many of these programs are aimed at borrowers working in public service fields, such as health care, teaching, and law, and require specific service commitments. Borrowers must typically meet a set of criteria to have student loan debt forgiven.
To find loan forgiveness programs in your state, search your state government website.
Eligibility Criteria and Application Processes
To qualify for state forgiveness programs, borrowers must meet certain criteria. In general, you will need to have outstanding education debt and be:
• A U.S. citizen
• A resident of the state
• Actively working in a required profession
Each state that offers forgiveness programs has a unique set of eligibility requirements. Seniors need to apply for the program and submit the required information and documentation as stipulated by their state.
Strategies for Managing Student Loan Debt in Retirement
If you’re a senior dealing with student loan debt in retirement, there are different techniques you can use to manage and potentially lower your payments. Here are three strategies to explore.
Income-Driven Repayment Plans
As mentioned above, IDR plans base your student loan monthly payments on your income and family size. This can lower student loan payments, which could make an IDR plan an option for borrowers who are looking for student loan forgiveness for low-income seniors.
You can apply for an IDR plan online. The process generally takes no more than 10 minutes. You can select an IDR program yourself or ask your loan servicer to put you on the plan that will give you the lowest monthly payment available.
Loan Consolidation Options
Another strategy senior borrowers can consider is loan consolidation. A Direct Consolidation Loan allows you to combine federal loans into one new loan to simplify your payments, potentially lower your monthly payment amount by extending your loan term, and gain access to IDR plans and federal forgiveness programs.
Just be aware that consolidating student loans means you may have a longer repayment period and pay more in interest.
Refinancing Considerations
With student loan refinancing, you pay off your existing loans with a new loan from a private lender. Ideally, the new loan will have a lower interest rate, which could lower your monthly payments, or better loan terms. You can refinance both private and federal student loans.
There are different types of refinancing borrowers might want to explore, including Parent PLUS refinance if you took out loans for your child’s education.
To qualify for refinancing, you’ll need a good credit score, and a solid financial profile. Learn how much you might save through refinancing by using our student loan refinancing calculator.
Finally, as you explore how to refinance student loans, consider this important caveat: Refinancing federal student loans makes them ineligible for federal benefits like income-driven repayment plans. Make sure you won’t need access to these federal programs before you move forward with refinancing.
Potential Legislative Changes Impacting Senior Borrowers
Certain proposed legislative changes could impact senior borrowers. Here’s more about the proposed policy reforms, advocacy efforts, and resources available.
Proposed Policy Reforms
In March 2025, President Trump signed an executive order to close the Department of Education (DOE) “to the maximum extent appropriate and permitted by law.” The department was created by Congress, and it would take an act of Congress to close it fully. Lawsuits have been filed against the closure. In the meantime, the DOE continues to operate, though with a diminished workforce.
It’s uncertain what will happen, but there might be potential changes if the Department of Education shuts down. For instance, the following might occur:
• Changes to forgiveness programs: Current federal forgiveness programs, including PSLF and IDR, may undergo reforms.
• Federal student loans may be transferred out of the DOE: President Trump has announced that the Small Business Administration would take over the federal government’s student loan portfolio, though some student loan experts say that is unlikely to happen. Details and timing have not been shared.
Advocacy Efforts and Resources
Some organizations have suggested ways that policyholders could address the student loan burden on seniors. For example, the National Consumer Law Center and the New America Foundation proposed several reforms, such as safeguarding Social Security benefits if older adults default on student loans, and providing targeted loan forgiveness to seniors.
Senior student loan borrowers may want to reach out to advocacy groups like the Student Borrower Protection Center for information and resources, or join a community like the Debt Collective’s 50 Over 50: Older Student Debtors group for support and to learn about ways to take action.
The Takeaway
Carrying student loan debt as a senior can be challenging, especially for those on a fixed income. But there are federal and state forgiveness programs that senior borrowers may be eligible for that might help cancel some of their debt.
In addition, making student loan payments more manageable through IDR plans, loan consolidation, or student loan refinancing, could make it easier for seniors to pay off their loans.
Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.
FAQ
Can student loans be discharged due to disability?
Yes, certain federal student loans, such as federal Direct loans, can be discharged due to disability if a borrower is totally and permanently disabled and qualifies for the Total and Permanent Disability (TPD) discharge. To qualify, you’ll need to fill out an application and provide documentation from one of three sources: the U.S. Department of Veterans Affairs, the Social Security Administration, or an authorized medical professional.
Are there state-specific loan forgiveness programs for seniors?
Yes, most states have state-specific loan forgiveness programs for residents. Many of these programs are for borrowers who work in public service fields like health care, teaching, and law. Borrowers must typically meet a set of criteria to have student loan debt forgiven. To find loan forgiveness programs in your state, search your state government website.
What happens to student loan debt if it’s not repaid before retirement?
If you don’t repay your student loan debt before you retire, you are still obligated to pay off what you owe. If you don’t, you could end up in delinquency just one day after your first missed payment, and in student loan default after 270 days of missed payments. Once your loan is in default, your loan holder can take you to court. In addition, the government can withhold up to 15% of your Social Security benefits to repay your defaulted loans and also withhold your tax refunds.
If you’re having trouble making your student loan payments, contact your loan service immediately to discuss repayment options and avoid default.
How can seniors manage student loan debt on a fixed retirement income?
Seniors on a fixed income may want to switch to an income-driven repayment plan that bases a borrower’s monthly loan payment on their discretionary income and family size. This typically results in a lower monthly payment. These borrowers could also explore other options that could potentially result in lower monthly payments, such as loan consolidation and student loan refinancing.
Is refinancing a good option for senior borrowers?
Whether refinancing is a good option for senior borrowers depends on a borrower’s individual situation. For instance, if your credit is strong, you might qualify for a lower interest rate or more favorable terms through refinancing. However, refinancing federal student loans makes them ineligible for federal benefits like forgiveness. If forgiveness is an option you think you might pursue, refinancing may not make sense for you.
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SoFi Student Loan Refinance
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