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More middle-aged Minnesotans mired in college loan debt


A new study showed that, counter to conventional wisdom, more middle-aged Americans, including those in Minnesota, are faced with debt from student loans.


A new study showed that, counter to conventional wisdom, more middle-aged Americans, including those in Minnesota, are faced with debt from student loans.

Of the 37.1 million citizens who have incurred debt from college, nearly half, 16.3 million, are between the ages of 30 and 50. Those 50 and older represent another 18 percent of those paying off student loans.

The study was conducted by the Federal Reserve Bank of New York, and according to analysis by the Pioneer Press, about 10 percent of those 50 and older are delinquent on their payments.

Experts believe that the surprising statistics have resulted from an increased number of Americans heading back to school in middle age to orchestrate career changes and find better opportunities. Another reason cited by analysts is the dramatic increase in loans requiring a co-signor, so parents have to take on and secure their children's loans.

Given the still-struggling economy, it has been difficult for kids, even with undergraduate degrees from elite universities, and adults who have gone back to school, to find jobs that pay enough to budget for loan repayment.

When interviewed by CBS, Mark Kantrowitz of Finaid.org, a nonprofit dedicated to helping students finance their college educations, estimated that 90 percent of new private student loans require a co-signor.

Unlike many debts, student loans cannot be cleared through bankruptcy except under extreme circumstances, so it's important that parents and students educate themselves on interest rates and take out as little money as possible.

If you or your family has been struggling to pay off student loans or other debt, contact an experienced Minnesota bankruptcy attorney today. These professionals can help guide you through the process and discuss what course of action is best for you.

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