85-Year-Old Fears Losing Home After Co-Signing Daughter’s Student Loan; Debt Crisis Highlights Risks for Elderly Co-Signers

In 2007, Rebecca Finch, now 85, co-signed a private student loan for her daughter Sabrina, who was pursuing a nursing degree. Both were hopeful that this investment would lead to a better future. However, as Sabrina faced personal and financial struggles, including a battle with bipolar disorder, the loan became a burden. Now, with Sabrina unable to work due to disability, the $31,000 loan has shifted entirely to Rebecca, whose sole income is her $1,650 monthly Social Security benefit. As an elderly woman with significant health issues, Rebecca fears losing her two-bedroom home in Troutville, Virginia, to the aggressive collection practices of the lender, Navient.

This situation is not unique. The private student loan market, which has seen a 70% increase between 2010 and 2019, often requires co-signers, leaving elderly parents like Rebecca vulnerable. Unlike federal student loans, private loans offer little protection for co-signers, and lenders rarely discharge debt, even in cases of disability or death of the borrower. Rebecca’s story underscores the significant risks involved in co-signing for private student loans, particularly for older individuals who may face financial instability and health challenges later in life.