Student loan debt during the pre-retirement years represents a serious retirement security threat, whether it is remaining debt from your own education or Parent PLUS loans for children. These final working years offer the last opportunity to eliminate education debt before retirement income drops permanently.

 

Strategies for managing student loan debt:

• Create an aggressive payoff strategy using any available freed-up income:

  • Children are no longer dependent

  • Potentially paid-off mortgage

  • Reduced living expenses as retirement approaches

• Prioritize loan elimination even above some additional retirement savings (beyond employer match) if loans would otherwise extend into retirement.

 

Why it matters:

• Student loan payments consume retirement income that may be needed for healthcare costs, long-term care, or basic living expenses.

• If carrying private student loans with high rates, consider refinancing for lower rates to accelerate payoff, as forgiveness programs rarely apply to pre-retirees.

 

Parent PLUS loans require special attention:

• These loans cannot be transferred to children and rarely qualify for forgiveness.

• Excessive borrowing for children’s education that cannot be repaid before retirement may result in:

  • Delayed retirement

  • Reduced retirement lifestyle

  • Or both

 

Additional Student Loan Resources:​

• Student Loan Debt Consolidation

• Student Loan Derferment and Forbearance