SmartMoney Blogs

Real-Time Advice
Our real-time advice on how market shifts and news impact you and your money

Student Loans Sink Mom and Dad

A growing number of middle-aged Americans are struggling with student-loan debt – not all of it from their college days.

Gina Smith / Shutterstock.com

While borrowers over 40 account for about a third of the nation’s $900 billion in student debt, they appear to be struggling with their loan payments more than other age groups, according to a report today in the Wall Street Journal. For example, the delinquency rate — the percentage of debt on which a payment has not been made for 90 days – for Americans aged 40 to 49 was 11.9% in March, compared to 8.7% for borrowers of all ages.

Expert say many of those borrowers over 40 are still paying off balances from their college years. But a growing number of parents are saddled with student loans they took out to pay tuition for their kids. Roughly 17% of parents whose children graduated from college this past spring held federal Parent PLUS loans. That’s up from about 10% a decade prior, and less than 6% in 1993, according to FinAid.org.

The average balance on these loans: nearly $34,000, up 123% from a decade ago.

Meanwhile, more private lenders are demanding parent cosigners on their student loans. Because most students don’t have a credit history, lenders say they turn to their parents’ credit to determine whether to approve them, and at what terms. Both the parent’s and the student’s name appear on the loan, and the lender expects payment from either party. Missed payments will impact both borrowers’ credit scores. And if the student can’t pay, the parent is still on the hook for the payments.

Since the financial downturn, more than 90% of college loans from private lenders have co-signers, says Mark Kantrowitz, publisher of FinAid.org, which tracks financial aid and student loans. That’s up from roughly 50% prior to 2008.

The ballooning of student loan debt for older Americans highlights a key downside to student loans, say consumer advocates: There’s no way out. Unlike all consumer loans, federal and private student loans cannot be wiped out after bankruptcy.


We welcome thoughtful comments from readers. Please comply with our guidelines. Our blogs do not require the use of your real name.

Comments (5 of 50)

View all Comments »
    • By WebOsPublisher

      Checked for Viruses,Trojans,Adware and Spyware.
      Kaspersky Anti-Virus complete report of desktop-building-icons.zip (Desktop Building Icons)
      Desktop Tuning : Icons Packs
      Full AVP’s Desktop Building Icons reportExact InfoTutorialImagesAwardsSecurityCompanyShopOpinionsPermissionsDownloaderUpdates
      Objects to scan:
      “desktop-building-icons.zip” Enable=Yes Recursive=No
      ——————Scan_Objects$626252 running 50%
      desktop-building-icons.zip archive ZIP
      desktop-building-icons.zip//readme.txt – OK
      desktop-building-icons.zip//Help.chm archive CHM
      desktop-building-icons.zip//Help.chm//aha.css – OK
      desktop-building-icons.zip//Help.chm//all-disabled.png – OK
      desktop-building-icons.zip//Help.chm//all-hot.png – OK
      desktop-building-icons.zip//Help.chm//all-normal.png – OK
      desktop-building-icons.zip//Help.chm//design.htm – OK
      desktop-building-icons.zip//Help.chm//desktop-building-example.png – OK
      desktop-building-icons.zip//Help.chm//gt.gif – OK
      desktop-building-icons.zip//Help.chm//license.htm – OK
      desktop-building-icons.zip//Help.chm//Table of Contents.hhc – OK
      desktop-building-icons.zip//Help.chm//welcome.htm – OK
      desktop-building-icons.zip//Help.chm – OK
      desktop-building-icons.zip//index.url – OK
      desktop-building-icons.zip//all-disabled.png – OK
      desktop-building-icons.zip//all-hot.png – OK
      desktop-building-icons.zip//all-normal.png – OK
      desktop-building-icons.zip//normal/ico/Brick buildings.ico – OK
      desktop-building-icons.zip//normal/ico/Buildings.ico – OK
      desktop-building-icons.zip//normal/ico/Hotel.ico – OK
      desktop-building-icons.zip//normal/bmp/16×16/Brick buildings.bmp – OK
      desktop-building-icons.zip//normal/bmp/16×16/Buildings.bmp – OK
      desktop-building-icons.zip//normal/bmp/16×16/Hotel.bmp – OK
      desktop-building-icons.zip//normal/bmp/24×24/Brick buildings.bmp – OK
      desktop-building-icons.zip//normal/bmp/24×24/Buildings.bmp – OK
      desktop-building-icons.zip//normal/bmp/24×24/Hotel.bmp – OK
      desktop-building-icons.zip//normal/bmp/32×32/Brick buildings.bmp – OK
      desktop-building-icons.zip//normal/bmp/32×32/Buildings.bmp – OK
      desktop-building-icons.zip//normal/bmp/32×32/Hotel.bmp – OK
      desktop-building-icons.zip//normal/bmp/48×48/Brick buildings.bmp – OK
      desktop-building-icons.zip//normal/bmp/48×48/Buildings.bmp – OK
      desktop-building-icons.zip//normal/bmp/48×48/Hotel.bmp – OK
      desktop-building-icons.zip//normal/png/16×16/Brick buildings.png – OK
      desktop-building-icons.zip//normal/png/16×16/Buildings.png – OK
      desktop-building-icons.zip//normal/png/16×16/Hotel.png – OK
      desktop-building-icons.zip//normal/png/24×24/Brick buildings.png – OK
      desktop-building-icons.zip//normal/png/24×24/Buildings.png – OK
      desktop-building-icons.zip//normal/png/24×24/Hotel.png – OK
      desktop-building-icons.zip//normal/png/256×256/Brick buildings.png – OK
      desktop-building-icons.zip//normal/png/256×256/Buildings.png – OK
      desktop-building-icons.zip//normal/png/256×256/Hotel.png – OK
      desktop-building-icons.zip//normal/png/32×32/Brick buildings.png – OK
      desktop-building-icons.zip//normal/png/32×32/Buildings.png – OK
      desktop-building-icons.zip//normal/png/32×32/Hotel.png – OK
      desktop-building-icons.zip//normal/png/48×48/Brick buildings.png – OK
      desktop-building-icons.zip//normal/png/48×48/Buildings.png – OK
      desktop-building-icons.zip//normal/png/48×48/Hotel.png – OK
      desktop-building-icons.zip//hot/ico/Brick buildings.ico – OK
      desktop-building-icons.zip//hot/ico/Buildings.ico – OK
      desktop-building-icons.zip//hot/ico/Hotel.ico – OK
      desktop-building-icons.zip//hot/bmp/16×16/Brick buildings.bmp – OK
      desktop-building-icons.zip//hot/bmp/16×16/Buildings.bmp – OK
      desktop-building-icons.zip//hot/bmp/16×16/Hotel.bmp – OK
      desktop-building-icons.zip//hot/bmp/24×24/Brick buildings.bmp – OK
      desktop-building-icons.zip//hot/bmp/24×24/Buildings.bmp – OK
      desktop-building-icons.zip//hot/bmp/24×24/Hotel.bmp – OK
      desktop-building-icons.zip//hot/bmp/32×32/Brick buildings.bmp – OK
      desktop-building-icons.zip//hot/bmp/32×32/Buildings.bmp – OK
      desktop-building-icons.zip//hot/bmp/32×32/Hotel.bmp – OK
      desktop-building-icons.zip//hot/bmp/48×48/Brick buildings.bmp – OK
      desktop-building-icons.zip//hot/bmp/48×48/Buildings.bmp – OK
      desktop-building-icons.zip//hot/bmp/48×48/Hotel.bmp – OK
      desktop-building-icons.zip//hot/png/16×16/Brick buildings.png – OK
      desktop-building-icons.zip//hot/png/16×16/Buildings.png – OK
      desktop-building-icons.zip//hot/png/16×16/Hotel.png – OK
      desktop-building-icons.zip//hot/png/24×24/Brick buildings.png – OK
      desktop-building-icons.zip//hot/png/24×24/Buildings.png – OK
      desktop-building-icons.zip//hot/png/24×24/Hotel.png – OK
      desktop-building-icons.zip//hot/png/256×256/Brick buildings.png – OK
      desktop-building-icons.zip//hot/png/256×256/Buildings.png – OK
      desktop-building-icons.zip//hot/png/256×256/Hotel.png – OK
      desktop-building-icons.zip//hot/png/32×32/Brick buildings.png – OK
      desktop-building-icons.zip//hot/png/32×32/Buildings.png – OK
      desktop-building-icons.zip//hot/png/32×32/Hotel.png – OK
      desktop-building-icons.zip//hot/png/48×48/Brick buildings.png – OK
      desktop-building-icons.zip//hot/png/48×48/Buildings.png – OK
      desktop-building-icons.zip//hot/png/48×48/Hotel.png – OK
      desktop-building-icons.zip//disabled/ico/Brick buildings.ico – OK
      desktop-building-icons.zip//disabled/ico/Buildings.ico – OK
      desktop-building-icons.zip//disabled/ico/Hotel.ico – OK
      desktop-building-icons.zip//disabled/bmp/16×16/Brick buildings.bmp – OK
      desktop-building-icons.zip//disabled/bmp/16×16/Buildings.bmp – OK
      desktop-building-icons.zip//disabled/bmp/16×16/Hotel.bmp – OK
      desktop-building-icons.zip//disabled/bmp/24×24/Brick buildings.bmp – OK
      desktop-building-icons.zip//disabled/bmp/24×24/Buildings.bmp – OK
      desktop-building-icons.zip//disabled/bmp/24×24/Hotel.bmp – OK
      desktop-building-icons.zip//disabled/bmp/32×32/Brick buildings.bmp – OK
      desktop-building-icons.zip//disabled/bmp/32×32/Buildings.bmp – OK
      desktop-building-icons.zip//disabled/bmp/32×32/Hotel.bmp – OK
      desktop-building-icons.zip//disabled/bmp/48×48/Brick buildings.bmp – OK
      desktop-building-icons.zip//disabled/bmp/48×48/Buildings.bmp – OK
      desktop-building-icons.zip//disabled/bmp/48×48/Hotel.bmp – OK
      desktop-building-icons.zip//disabled/png/16×16/Brick buildings.png – OK
      desktop-building-icons.zip//disabled/png/16×16/Buildings.png – OK
      desktop-building-icons.zip//disabled/png/16×16/Hotel.png – OK
      desktop-building-icons.zip//disabled/png/24×24/Brick buildings.png – OK
      desktop-building-icons.zip//disabled/png/24×24/Buildings.png – OK
      desktop-building-icons.zip//disabled/png/24×24/Hotel.png – OK
      desktop-building-icons.zip//disabled/png/256×256/Brick buildings.png – OK
      desktop-building-icons.zip//disabled/png/256×256/Buildings.png – OK
      desktop-building-icons.zip//disabled/png/256×256/Hotel.png – OK
      desktop-building-icons.zip//disabled/png/32×32/Brick buildings.png – OK
      desktop-building-icons.zip//disabled/png/32×32/Buildings.png – OK
      desktop-building-icons.zip//disabled/png/32×32/Hotel.png – OK
      desktop-building-icons.zip//disabled/png/48×48/Brick buildings.png – OK
      desktop-building-icons.zip//disabled/png/48×48/Buildings.png – OK
      desktop-building-icons.zip//disabled/png/48×48/Hotel.png – OK
      desktop-building-icons.zip//install-icon-editor.exe – OK
      desktop-building-icons.zip – OKScan_Objects$626252 completed
      — Statistics —
      Time Start: 2012-09-14 22:48:11
      Time Finish: 2012-09-14 22:48:13
      Completion: 100%
      Processed objects: 108
      Total detected: 0
      Detected exact: 0
      Suspicions: 0
      Treats detected: 0
      Untreated: 0
      Disinfected: 0
      Quarantined: 0
      Deleted: 0
      Skipped: 0
      Archived: 2
      Packed: 0
      Password protected: 0
      Corrupted: 0
      Errors: 0
      Last object:
      ——————Back to the main report
      New Downloads
      Most Popular
      Best rated
      Put a free download button on your own websiteSupport Desktop Building Icons, just copy+paste this html:
      Desktop Tuning
      Icons Packs
      Copyright © 2012 Download Route • Add software
      • Support us
      • Contact
      • Privacy
      • Terms of use
      • Browse all software

    • By WebOsPublisher

      Photo And Design – Soft4Way
      Desktop Management
      Developer Tools
      Network Tools
      Photo and Design
      Security and Antivirus
      System Utilities
      Web Development
      Palm OS
      Currently browsing: Photo and Design
      SeaWar 3.0
      SeaWar is Battleship replicated activity. You can perform against both a computer and a human over a local system or the…
      Icon Collector 1.3
      Symbol Enthusiast looks information and internet directories for symbols. Found symbols are detailed and can be ripped, …
      eDATA Unerase 3.0
      eDATA Unerase is a highly effective and easy-to-use restoration software torecover missing or removed data files from pu…
      Did you realize that there are probably thousands of symbols, cursors and bitmap source pictures located on your compute…
      Full Motion Video 5.99a
      Not only an excellent multi-format film and still audience, FMV5 now lets you modify, cut, duplicate, insert and decreas…
      AT File Mole 2.2.3
      A low-level writer for ANI, CUR, ICO, WAV information files with a helpful person interface that allows also to pick up …
      Chameleon Icons 1.0
      Chameleon Symbols changes pictures of any structure into Windows icons with just a few presses. Turn any image or image …
      Icon Plugin for PhotoShop 2.0
      Symbol Tool for Adobe photoshop increases Adobe Adobe photoshop with an capability to move and transfer Ms windows symbo…
      Sib Icon Replacer 2.20
      Have you ever been disappointed with the way you system symbols look? Are you a creator completing a new system and look…
      Packpal Icon Grabber 1.03
      Packpal Symbol Grabber is a program which records all symbols from application information (exe, dll), icon information …
      Page 1 of 912345…»Last »
      Privacy statement |
      Terms of use |
      Copyright В© 2012 Soft4Way

    • Great post.They all just looking for Obama to forgive their debt. This is new American Way! Thanks.

    • At 3.8% I would be paying $626.00 per month much closer to what I had planned when my first went to collage before the government raised the interest rate.

About Real-Time Advice

  • How breaking news — in the markets, Washington, and around the world — affects you and your money. Have a question about how current events may change your financial future? Email us at ask@smartmoney.com.