Life Stages
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Student Loan
Student loan considerations during the empty nest years focus primarily on Parent PLUS loans or cosigned loans for children. If you borrowed for children’s education during the family years, these loans now compete with retirement preparation during the critical final accumulation period.
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Parent PLUS loans offer no forgiveness except in cases of death or disability, meaning you remain responsible for the duration of the loan.
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Unlike other student loans, parent loans rarely justify sacrificing retirement security—yet many parents continue paying education debt instead of maximizing retirement savings.
Evaluation and strategy:
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Honestly assess: will this debt extend into retirement? If so, create aggressive payoff strategies using freed-up cash flow from children’s independence.
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Consider loan consolidation for simplified management, but recognize this may extend repayment and increase total interest.
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Some parents may find they cannot afford both loan payments and adequate retirement savings—a clear signal that the educational borrowing exceeded prudent levels.
Guiding principle:
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When choosing between student loan payments and retirement contributions, generally prioritize retirement savings, especially if employer matching is available. You cannot borrow for retirement.
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Make minimum loan payments while maximizing retirement accounts, then accelerate loan payoff as retirement approaches.
If you are still carrying your own student loan debt into empty nest years, this signals earlier financial struggles that must be resolved before retirement. Explore remaining forgiveness programs, but recognize that most forgiveness options have limited applicability to long-term borrowers. Focus on elimination before retirement begins.
Additional Student Loan Resources: