Retirees in most states may struggle to cover senior living costs, study suggests

Student loan debt is increasing among older adults, according to data released Friday by the Consumer Financial Protection Bureau, suggesting that more prospective senior living community residents may face a big impediment to making a move.

The new information builds on the CFPB’s January report about the student loan debt of consumers aged 60 or more years, adding state-level data that show changes between 2012 and 2017 in the number of older borrowers, the median amount owed and the proportion and number of older borrowers in delinquency.

Highlights:

  • The number of older borrowers increased by at least 20% in every state, and the number of older borrowers increased by 46% or more in half of all states.
  • In more than three-fourths of states, the median student loan balance of older borrowers increased by more than $1,000, and the total outstanding student debt held by 60+ borrowers increased by more than 50%.
  • In all but five states, the proportion of older borrowers in delinquency increased.

The five states with the highest number of 60+ borrowers with student loan debt in 2017:

  1. California (317,472)
  2. New York (260,352)
  3. Texas (222,144)
  4. Florida (208,320)
  5. Pennsylvania (201,744)

The median student loan debt balance per 60+ borrower in those states in 2017 ranged from $14,500 to $18,200.

The five states that saw the biggest percent change in 60+ borrowers with student loan debt from 2012 to 2017:

  1. Delaware (93%)
  2. New Hampshire (73%)
  3. New York (64%)
  4. Georgia and Maryland (63%)
  5. Mississippi (62%)

The median student loan debt balance per 60+ borrower in those states in 2017 ranged from $12,400 to $19,300.

The five states where the median student loan debt per 60+ borrower is the highest:

  1. Maine ($23,599)
  2. New Mexico ($20,088)
  3. Delaware ($19,271)
  4. Maryland ($18,710)
  5. New Jersey ($18,608)

States with the highest total student loan debt balance for all 60+ borrowers in 2017:

  1. California ($11.27 million)
  2. New York ($9.18 million)
  3. Florida ($7.13 million)
  4. Pennsylvania ($6.83 million)
  5. Texas ($6.76 million)

The states with the highest percentage of 60+ borrowers in delinquency on their student loans (also including Washington, D.C.) in 2017:

  1. District of Columbia (30%)
  2. Mississippi, Nevada and Oklahoma (22%)
  3. Georgia, South Carolina and West Virginia (20%)

See the entire report here.

From the October 01, 2017 Issue of McKnight's Senior Living