According to the Washington Post, student loan debt is continuing to rise in the United States. In fact, 70% of graduates leave with student debt, according to America’s Debt Help Organization. As the cost of studying continues to rise, students are also beginning to spend an average of $30,000 per year, backed by loans. Students with grants and scholarships also struggle with having to borrow money at some point to earn a university degree. As a result, college graduates continue to drown in student loan debt. Did you know that student loans can affect your retirement plan, though?Seniors in Student Loan DebtWhile student debt affects individuals of all ages, it presents a particular challenge for seniors. According to the Federal Reserve Bank of New York, people over the age of 60 had the fastest growth of student loan balances of any age group. The total amount grew from $6 billion to over $58 billion in 2014. As a result, a group of seniors are reaching retirement, as well as dealing with the burden of student debt.Older people with student loans often have less saved for retirement than those without debt. They are also more likely to skip the necessary healthcare visits and precautions. Once you fall behind on a federal student loan, the government has the ability to garnish your current income, social security benefits, and even take a portion of your yearly tax refund.

Older woman at table with bills; image courtesy www.dailymail.co.uk.

According to the Consumer Financial Protection Bureau, more than 2.8 million senior Americans had an outstanding debt, due to the majority of loans to finance their children’s and grandchildren’s education. The report also found many signs that seniors were also struggling to repay student loan debt before reaching retirement.Some of these indications include the following:

• Increased rate of missed/late payments by senior borrowers.

• High rate of 37% among senior borrowers in default, compared to 17% of borrowers under the age of 49.

• Increase rate of Americans losing portions of their Social Security benefits due to unpaid student loans.

As the only source of income for 75% of seniors over 65 is Social Security, this means the offsets may increase the risk of serious debt for many borrowers.Prevent the Risks of DebtOnce you’re ready to make payments, consider paying a higher percentage than the required monthly amount. Find the best companies for student loan refinancing and consolidation. If you have multiple loans to cover, consider sending direct payments to the loans with the highest interest rate. Reducing the amount of interest you have to pay will help you pay off the loan quicker. Otherwise, most financial lenders will treat the extra amount as an early deduction to the next installment. There is also a useful guide to paying off your student loans that is provided by Bankrate, Inc.Be sure to include the loan ID number. Many co-signers have complained that loan services transfer their payments to other student loans rather than the loan they co-signed. There are several options borrowers can choose from when reducing the monthly payment. Some programs offer monthly payment limits of 10% of discretionary income. If you’ve retired and your AGI has reduced to less than 150% of the federal government’s established poverty line, your monthly payment will ultimately be zero.Educational loans are difficult to pay off when you are near retirement. Unlike young college graduates, seniors have less prospect of rising salary income needed to help pay off the loans. In other words, the struggle of paying off student loans before retirement can result in poverty.If you have agreed to co-sign on a private loan, ask about the requirements of a co-signer. This will allow you to remove your responsibility for the loan if you start to notice the late repayments. Generally, the primary signer should have a valid record of good credit. All it takes is a few days late with payments for the co-signer to become responsible for the loans.LendEDU surveyed 1,000 former student loan borrowers that have successfully repaid a student loan balance of at least $15,000. Our study's key findings included:

• 42% of borrowers took only 1-5 years to repay their debt, while 26% took between 6-9 years, 21% took 10 years, 7% took 11-15 years, and 2% took 16-20 years.

• Amongst those borrowers that took only 1-5 years, their median monthly payment size was $350, the highest of any group.

• Also, 51% of those that only took between 1-5 years had made at least one lump sum payment of at least $5,000. Once again, the highest of any group.

• Once respondents had repaid their debt, 15% said they started contributing more to their retirement savings, while 13% starting saving money for a house, 12% were able to eliminate other forms of debt, and another 12% could contribute more to their savings fund.

To view the complete study results, click here.