If you’re getting ready to retire and you have student loan debt, you’re not alone. According to the National Consumer Law Center, 3.5 million adults aged 60 or older owe more than $125 billion in student loans.
While you do have to pay student loans after retirement, there are ways to make the process more manageable. Read on to learn about retiring with student loan debt, including options for forgiveness and how to save money on your loans.
Table of Contents
Key Points
• Approximately 3.5 million adults aged 60 or older have student loan debt, requiring monthly payments in retirement until the loans are repaid.
• Data shows that borrowers aged 50 to 61 have the highest average federal student loan balance, which is $46,556.
• Fixed retirement income creates challenges for covering loan payments; if loans go into default due to nonpayment, the federal government can withhold up to 15% of an individual’s Social Security benefit.
• Income-driven repayment plans typically offer lower payments based on discretionary income and family size, while Public Service Loan Forgiveness requires 120 qualifying payments from those who are eligible, before canceling remaining loan balances.
• Federal loan consolidation combines multiple loans into one streamlined payment, while refinancing replaces existing federal and private loans with a new loan with new rates and terms.
Can You Retire With Student Loan Debt?
It is possible to retire with student loan debt, but you will need to keep making your monthly payments during retirement until your student loans are fully repaid.
Even if you’ve been saving for retirement for decades, loan payments can put an extra strain on your budget during your golden years, so it’s a good idea to plan ahead.
Paying Back Student Loans After Retirement
Student loans are financial obligations you must repay, even in retirement. If you fail to pay them, your student loans can go into default, which can have serious repercussions.
There are advantages and disadvantages to paying student loans in retirement and it’s helpful to know what they are.
Pros of Paying Back Student Loans After Retirement
Paying off student loans in retirement can help you maintain or strengthen your credit. When you pay your loan on time each month, that positive credit behavior is reflected on your credit report. It could positively impact your credit score, which could help you qualify for better interest rates on a mortgage, personal loans, and credit cards.
In addition, paying off your student loans as quickly as possible in retirement can reduce the amount of interest you’ll pay. The sooner you pay off the loans, the less interest you’ll pay overall.
And finally, paying off your student loan debt will leave you with more money in your budget. Whether you choose to travel or move to your dream retirement location, you’ll be able to dedicate more funds to your goals. Plus, you’ll have the peace of mind of knowing your student debt has been eliminated.
Cons of Paying Back Student Loans After Retirement
All that said, paying student loans in retirement can be challenging. Individuals aged 50 to 61 have the highest average federal student loan balance, which is $46,556, according to the Education Data Initiative. That’s a steep amount to pay off after retiring.
Once an individual is on a fixed retirement income, it can be a struggle to make the monthly loan payments. The money that you need to allocate to your student loan likely means that you’ll have less to spend on essentials, including daily living expenses and healthcare, and less to contribute to savings. You might need to work longer or get a part-time job to bring in extra income.
And if you fail to make student loan payments, your loans could end up in default. At that point, the federal government can withhold up to 15% of your Social Security benefits as well as your tax refund to put toward your outstanding federal student loan balance.
Defaulted student loans are reported to the credit bureaus and they typically remain on your credit report for seven years. A default damages your credit and can make it difficult to get a loan or credit cards.
At What Age Can You Stop Paying Student Loans?
Unfortunately, there is no age when you can just stop paying your student loans. Retirement has no impact on your obligation to repay your student loan debt. No matter what your age, your monthly loan payments will continue to be due each month until the loan is paid off.
Student Loan Forgiveness Options
However, one option that might help with student loans in retirement is loan forgiveness. There are some federal student loan forgiveness programs offered by the U.S. Education Department that borrowers with student loan debt may want to explore.
Income-Driven Repayment (IDR) Plans
Borrowers with federal student loans may be able to get their loans forgiven through an income-driven repayment plan. IDR plans base monthly payments on an individual’s discretionary income and family size. Because repayment is stretched over 20 or 25 years, your monthly payments may be lower.
As of March 2026, there are three IDR plans available: Pay as You Earn (PAYE), Income-Based Repayment (IBR), and Income-Contingent Repayment (ICR). Only one of these plans, the IBR plan, offers forgiveness as an option on the remaining balance on your loan after 20 years.
Public Service Loan Forgiveness (PSLF)
Borrowers who work full-time in public service might be eligible for Public Service Loan Forgiveness (PSLF). They must work for a qualifying employer and make 120 qualifying payments under an eligible repayment plan, such as an IDR plan. After that, the remaining loan balance may be forgiven.
Options for Paying Off Student Loans During Retirement
Once a borrower pays off their student loans in retirement, they can enjoy retirement without the stress of education debt hanging over them. As part of preparing for retirement, you may want to come up with a strategy for repaying your loans so that you have a plan in place.
There are a number of repayment options to consider, including the ones below. Using a student loan repayment calculator may be helpful as you evaluate each one.
Lump Sum
If you can afford to pay off your loans all at once, you could potentially save a lot of money overall. You’ll eliminate the interest you would have owed if you paid the loan off over time, which could be considerable, depending on the length of your loan term. Plus, you’ll immediately free up money in your monthly budget to dedicate to other financial goals.
Consolidate Your Loans
If you have multiple federal student loans, another potential option is student loan consolidation. With this process, you combine multiple federal student loans into one new loan with one new monthly payment. The interest rate on the new loan is the weighted average of your existing loan rates rounded up to the nearest one-eighth of one percent.
Just be aware that while consolidating student loans streamlines and simplifies your monthly payments, it typically won’t save you money overall.
Refinance Student Loans
Borrowers with private student loans, or a combination of federal and private loans, might want to consider student loan refinancing. When you refinance, you replace your existing loans with a new loan with new rates and terms. Ideally, you would receive a loan with a lower interest rate or shorter loan term through refinancing. That could save you money on interest over the life of the loan.
However, it’s important to understand that if you refinance federal loans, you lose access to federal benefits, such as income-driven repayment plans and student loan forgiveness. If you think you may need these programs, refinancing is probably not the right option for you.
Adjusting Your Retirement Budget
You could also tweak your budget to free up some extra money to put toward your monthly student loan payments. Start by reviewing your expenses carefully. Look for costs that you could reduce or eliminate, such as subscription services, restaurant meals, gym memberships you rarely use, and so on. By directing those funds to your student loan payments, you may be able to pay off your loans a little faster.
You might also consider the avalanche method for repaying debt. With this process, you pay more money to the student loan with the highest interest rate while continuing to make minimum payments on your other loans. Once you pay off that loan, you focus on the loan with the next highest interest rate and so on. This can help reduce the amount of interest you’ll pay over time.
How Student Loan Debt Can Impact Retirement Planning
Student loan debt can affect retirement planning in several different ways. Here are some of the impacts student loans can have and what to do about them.
Impact on Monthly Cash Flow
Making monthly student loan payments means borrowers will have less money for other things, including daily living expenses such as housing, utilities, and groceries.
They’ll also have less money to allocate toward saving and investing for retirement. According to a 2026 report by Fidelity, borrowers over age 50 with student loan debt have retirement balances that are about 30% less than those in the same age group that don’t have student loan debt.
Impact on Social Security or Fixed Income
Student loan debt can also impact a borrower’s Social Security benefits and fixed income. If their federal student loans go into default because they are unable to pay them, the government can withhold up to 15% of a borrower’s Social Security benefits to apply to the outstanding loans, as long as the remaining balance on their monthly Social Security benefit is at least $750. This can create financial hardship for those on a fixed income, especially for low-income individuals.
Balancing Debt Payoff vs Retirement Savings
It can be challenging to juggle paying off loans and saving for retirement, but older borrowers can strive to strike a balance between the two.
Because workers near retirement age tend to have large student loan balances, as noted earlier, prioritizing paying off their debt could save them money on interest and keep them from falling into delinquency or default on their federal loans. In this case, they may want to put more money or extra payments toward their loans. As they pay off loans, they could then direct the money toward retirement.
Another option some borrowers may want to explore is working longer to pay off their student loan debt before retiring. That way, they can retire free of student debt — along with the stress and financial struggles it brings — and fully concentrate on saving for the future once they retire.
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The Takeaway
Dealing with student loans in retirement isn’t ideal, but having a plan in place for paying off your loans could help you save money on interest, free up funds you can devote to other goals, and give you peace of mind.
Potential ways to make your student loan debt more manageable include using an income-driven repayment plan, pursuing student loan forgiveness, or refinancing your student loans. Weighing all the options can help borrowers decide which one is best suited to their situation.
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
Do you have to pay back student loans when you retire?
Yes. Student loans don’t just “go away” once you reach a certain age or enter retirement. You are responsible for paying back student loans, even in retirement.
How many years do you have to pay student loans?
There is no limit on how long you have to pay off student loans. You can pay them off for however long it takes. However, be aware that the longer it takes to repay your loans, the more you will typically pay in interest.
Does your student loan get written off at 50?
No, student loans do not get written off or canceled at 50 — or at any age. Borrowers have an ongoing obligation to repay their student loans.
Can Social Security be garnished for student loans?
Possibly. If you miss 270 days of payments on your federal student loans, they can go into default. Defaulting on a student loan can lead to serious consequences, including the government withholding up to 15% of your Social Security benefits
Should you pay off student loans before retiring?
Whether to pay off student loans before retiring depends on your specific situation. For those who are older and can afford to pay off student loans before retirement, doing so could help them free up money in retirement, when they are on a fixed income. However, for those who are younger, prioritizing saving for retirement may make sense because their money will potentially have more time to grow before they reach retirement age.
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