6 Things You Can Do If You’re Retiring with Student Loan Debt

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Retiring should be about relaxing after decades of work, enjoying your hobbies and spending more time with loved ones.
But if you’re looking at retirement with student loan debt hanging over your head, you might be wondering how you’re supposed to enjoy your golden years with that kind of stress.
But you don’t need to worry. There are options for managing, and in some cases, even alleviating this debt. Here’s a breakdown of what you can do.
Understand Your Debt
Before you do anything, it’s important to understand the type of student loan debt you have. Is it federal or private? The options available to you can vary significantly based on this distinction.
Federal loans often have more flexible repayment and forgiveness options compared to private loans, which are a bit more rigid.
Consider Income-Driven Repayment Plans
For federal student loans, consider looking into Income-Driven Repayment (IDR) plans. These plans adjust your monthly payment based on your income and family size, which can be especially helpful if you’re on a fixed income in retirement.
After a certain number of years on an IDR plan, any remaining debt could be forgiven. It’s like the financial equivalent of a marathon — pacing yourself is key.
Deferment vs. Forbearance
If you’re in a tight spot and need immediate relief, deferment or forbearance might be the best options to consider as these options temporarily pause your loan payments.
While interest might still accrue during this time, it could give you the breathing room you need to get your finances in order without defaulting on your loans.
Research Loan Forgiveness Programs
Loan forgiveness programs are the light at the end of the tunnel for some of those with federal loans.
If you worked in public service, you might be eligible for the Public Service Loan Forgiveness (PSLF) program. There are also forgiveness options for teachers and some specific to other professions.
It’s worth doing a bit of research to see if your career could help clear away the rest of your debt.
Try Refinancing
Refinancing is another path you might consider, especially if you have private loans. Doing this requires you to take out a new loan with a lower interest rate to pay off your existing loans. It can simplify your payments and potentially save you a ton of money in interest.
Just keep in mind that you’ll lose federal loan benefits like IDR plans and loan forgiveness if you refinance federal loans with a private lender. Those with federal loans should think about a Direct Consolidation Loan Application instead, which allows you to combine multiple federal student loans into a single loan with just one monthly payment.
Consult a Financial Advisor
If you’re not sure where to start, it might be worth taking some time to chat with a financial advisor, especially one familiar with student loans and retirement planning.
They can provide personalized advice tailored to your specific situation, which can be incredibly valuable when navigating the complexities of debt and retirement.
The Takeaway
The key to managing student loan debt in retirement is not to panic. By understanding your options and making informed decisions, you can navigate your way through this challenge.
Whether it’s adjusting your payment plan, seeking forgiveness or getting professional advice, there’s a path forward.
Editor's note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates' editorial team.