Nearly 10 million Americans age 50 and older are carrying student loan debt, creating new financial pressures as they approach retirement. According to Federal Student Aid, many older borrowers are delaying retirement, adjusting spending plans, or changing repayment strategies to manage their obligations.
The growing burden reflects loans taken out for personal education, children’s college costs, or both. Financial advisers say repayment obligations are increasingly shaping retirement decisions as borrowers seek ways to balance monthly expenses with reduced income after leaving the workforce.
Many older Americans expected to enter retirement after decades of saving, only to find student-loan payments complicating those plans. According to Federal Student Aid, about 9.5 million adults aged 50 and older held approximately $452 billion in student loan debt during the first quarter of 2026.
That debt can affect not only how retirees spend their savings, but also when they are able to stop working. Financial advisers interviewed by The Wall Street Journal described clients who postponed retirement, revised budgets, or switched repayment plans to reduce monthly expenses.
Borrowers Are Exploring Repayment Options to Reduce Monthly Costs
One of the first steps for many borrowers is determining whether they qualify for federal loan-forgiveness programs or alternative repayment plans. According to Federal Student Aid, many borrowers are unaware they may be eligible for forgiveness on at least part of their federal student loan debt, while private student loans generally do not offer comparable relief.
The Public Service Loan Forgiveness program remains available for qualifying government and nonprofit employees who meet program requirements, including the equivalent of 120 qualifying monthly payments under an approved repayment plan. For Parent PLUS loans, eligibility depends on the parent borrower, although recent changes to the federal student-loan system have limited access for some borrowers.
Income-driven repayment plans have also helped some older borrowers lower monthly payments. The Wall Street Journal reported that financial adviser Bruce Maginn worked with a couple in their early 60s carrying about $100,000 in Parent PLUS loans. By moving from a standard repayment schedule to an income-driven plan, they significantly reduced their monthly payments, although the change extended the repayment period and increased total interest costs.
Another adviser, Heather Welsh, said one client in his late 60s delayed retirement twice because he believed he needed to eliminate roughly $20,000 in student-loan debt first. After switching to an income-driven repayment plan, his monthly payment fell from about $350 to around $100 in retirement.
Budget Changes and Delayed Retirement Remain Common Responses
For retirees whose income declines after leaving the workforce, student loan payments can create cash-flow challenges. Financial advisers said reviewing household spending has become an important part of helping clients remain within their retirement budgets.
According to The Wall Street Journal, adviser Jenny Daly worked with a single mother in her early 60s who owed about $120,000 in student loans for her child’s education. The client reduced travel expenses and closely monitored spending while continuing to make progress on the debt, with the budget reviewed annually.
Welsh also described a divorced woman in her early 60s who retired with nearly $50,000 in Parent PLUS debt. Rather than making major lifestyle changes or taking a part-time job, she claimed Social Security benefits before reaching full retirement age and switched repayment plans to lower her monthly obligation.
Some borrowers ultimately decide to remain in the workforce. Eric Ludwig, chief executive of Stockbridge Private Wealth Management, said clients in their early 60s carrying about $140,000 in combined student debt chose to continue working for several more years. The additional income allowed them to reduce debt while helping pay some of their son’s education expenses. Still, advisers noted that delaying retirement is not always possible, particularly if health problems arise unexpectedly.
