6 Replies Latest reply on Mar 12, 2014 1:27 PM by Sheryl

    social security and student loans

    coco2004
      I am 63 years old, and yes, believe it or not I have student loans approaching $70,000.  Would there be any benefit for me to start collecting SS now and use that money to pay down my remaining student loans?  I plan to work another 3 to 5 years in my current career.  I do have a pension plan with the state, I'm a teacher, and will have some money coming in for investments I made while living/teaching overseas.  I am also starting up an 'encore' career in retirement as a travel agent/tour guide.  I am now licensed as a travel agent and will spend the next few years getting the business up and running while I still have a steady paycheck.  I'm not looking to do this fulltime, or even expect to make much money, but it's something I've always wanted to do and decided to make a go of it in retirement. 
       
      My other option, of course, is to just make my monthly student loan payment and call it a day.  Thoughts or advice?  Thank you very much.
        • Re: social security and student loans
          MyR Community Manager

          coco2004, thank you for creating a new discussion thread! We appreciate and enjoy your participation in the MyRetirement.org online community and look forward to your future contributions.

          • Re: social security and student loans
            Depends on the interest rate you are paying on loans and  the penalty for taking SS early.  You could model this in a spreadsheet with what you would get if you started taking SS now versus what you would get taking SS when you are lets say 67.  Take the payments from SS in both cases and apply them to your loan until the loan is paid off.  Then see what happens.    You could model this out to your life expectancy lets say 92 to see which option gives you the most total return after paying off the loans. 
            • Re: social security and student loans
              Depends on the interest rate on your loans and the difference in the SS payment taking it now vs waiting until say 67 or when you receive full SS benefits.   You can model this in a Spreadsheet.   Take the SS payment in each case and apply it to the loan or loans until they are paid off using the interest rate for each loan.  Model it to your life expectancy and see which one gives you the most after paying off the loans. 
              • Re: social security and student loans
                bwhitebi
                Don't feel like the lone stranger. Mine top 100K. I have 9 years till retirement but I doubt I'll ever pay them off.
                  • Re: social security and student loans
                    JerryD
                    I don't mean to pry, but how is it possible to still have student debt of $70k and $100k while on the final lap to retiring? Major career change late in life? Or?

                    I had some rough patches in the latter part of my career with jobs, but I made it a priority to pay off our house and never, ever had any short-term debt, except a few cars. If we could not pay for it, we did not buy it. I am so glad that we did/do not have to struggle with paying off debt when we retired and highly recommend it. But student debt at this level looks very much like a house one still has to pay off and I don't think that there is a way around paying. 
                  • Re: social security and student loans
                    Sheryl
                    Hi.  I have parent plus loans for my kids but they were taken out with the understanding they would be paying the bill.  Does anyone know if they reduce your social security to pay the student loan debt at retirement?