>> Reporter: NANCY KUKAY WORKS

AT A COMMUNITY COLLEGE IN

MARYLAND, COORDINATING TECHNICAL

EDUCATION PROGRAMS.

SHE'’S WORKED IN EDUCATION MOST

OF HER CAREER AND LOVES HER JOB.

BUT AT 65 YEARS OLD, SHE HAD

IMAGINED RETIRING BY NOW.

>> I CAN'’T AFFORD TO RETIRE.

I COULD NEVER MAKE THE PAYMENTS.

>> Reporter: PAYMENTS FOR

STUDENT LOANS SHE TOOK OUT FOR

HER SON ANDREW ABOUT A DECADE

AGO.

SHE PAYS AROUND $500 A MONTH ON

THE NEARLY $75,000 SHE OWES ON

LOANS SHE TOOK OUT, AND OTHERS

SHE CO-SIGNED WITH HER SON.

BY HER MATH, SHE'’LL PROBABLY BE

PAYING ON HER LOANS ALONE FOR

ANOTHER 11 YEARS.

>> EVEN IF I STARTED DRAWING ON

MY RETIREMENT AND SOCIAL

SECURITY TOGETHER, I STILL

WOULDN'’T HAVE ENOUGH MONTHLY TO

MAKE THOSE PAYMENTS.

IT'’S CERTAINLY NOT WHERE I HOPED

TO BE AT THIS STAGE IN LIFE.

>> Reporter: THE NUMBER OF

AMERICANS AGE 60 AND OLDER WITH

STUDENT LOAN DEBT QUADRUPLED

BETWEEN 2005 AND 2015 TO NEARLY

THREE MILLION.

AND THE AVERAGE AMOUNT THEY OWE

HAS NEARLY DOUBLED, FROM ABOUT

$12,000 TO ALMOST $24,000.

>> THERE'’S A NUMBER OF FACTORS

THAT CONTRIBUTE TO WHY THE

NUMBER OF OLDER BORROWERS IS

INCREASING.

>> Reporter: ATTORNEY PERSIS YU

DIRECTS THE STUDENT LOAN

BORROWER ASSISTANCE PROJECT AT

THE NATIONAL CONSUMER LAW CENTER

IN BOSTON.

>> STUDENT LOANS ARE STRUCTURED

TO BE PAID OVER A VERY LONG

PERIOD OF TIME.

THEY HAVE NO STATUTE OF

LIMITATIONS, WHICH MEANS THAT

THEY FOLLOW YOU.

THEY CAN FOLLOW YOU TILL YOU

DIE, LITERALLY.

AND SO, THERE ARE A LOT OF

BORROWERS WHO ARE OUT THERE WHO

STILL HAVE THEIR OWN STUDENT

LOAN DEBTS FROM THE '’70s, FROM

THE '’80s.

>> I THINK, ORIGINALLY, IT WAS,

LIKE, $27,000.

>> Reporter: 64-YEAR-OLD ANNETTE

PELAEZ OF BOSTON IS STILL PAYING

ABOUT $300 A MONTH FOR THE LOAN

SHE TOOK OUT 20 YEARS AGO TO

PURSUE GRADUATE DEGREES IN

AMERICAN STUDIES, A LOAN SHE

EXPECTS TO BE PAYING FOR ANOTHER

TEN YEARS.

SHE WORKED FOR NONPROFITS

SERVING CHILDREN AND THE

ELDERLY, BUT HER INCOME NEVER

REACHED THE LEVEL SHE HAD HOPED.

>> I'’M MAKING NOW WHAT I MADE IN

THE '’80s.

I'’M MAKING ABOUT $42,000 A YEAR.

>> Reporter: SO, WHEN YOU WENT

BACK TO GRAD SCHOOL, YOU ASSUMED

YOU'’D BE MAKING A LOT MORE MONEY

THAN THAT?

>> OH, YES.

ABSOLUTELY.

I MEAN, IF I WAS MAKING THAT

MONEY WITH A BACHELOR'’S DEGREE

IN THE '’80s, I ASSUMED THAT, YOU

KNOW, WITH A MASTER'’S, I'’D DO A

LITTLE BIT BETTER.

>> FOLKS WITH STUDENT LOAN DEBT

TYPICALLY SAVE LESS THAN FOLKS

WITHOUT STUDENT LOAN DEBT.

AND THEN, ONCE THEY'’RE IN

RETIREMENT, IF THEY ARE REPAYING

LOANS, CERTAINLY THAT IS A

LIABILITY THAT THEY WOULDN'’T

OTHERWISE HAVE TO PAY FOR WHEN

THEY'’RE ON A FIXED AND LIMITED

INCOME.

>> Reporter: BECAUSE OF HER DEBT

AND THE HIGH COST OF LIVING IN

BOSTON, PELAEZ SAYS SHE HAS

LITTLE RETIREMENT SAVINGS.

SHE RECENTLY RETIRED BUT CAN'’T

AFFORD TO KEEP LIVING IN BOSTON,

SO SHE MOVED TO NEW MEXICO,

WHERE IT'’S CHEAPER TO LIVE.

BUT EVEN STILL, HER EXPECTED

$1,000 A MONTH SOCIAL SECURITY

CHECK WON'’T COVER HER EXPENSES.

>> RENT WILL BE $620 PLUS

UTILITIES, AND THEN THERE IS THE

SCHOOL LOAN, AND THERE GOES THE

$1,000.

SO, I WILL BE DOING SOME PART-

TIME WORK.

>> Reporter: HOW DO YOU FEEL

ABOUT THAT?

I MEAN, IS THIS WHAT YOU

PICTURED RETIREMENT BEING?

>> WELL, YOU KNOW, AT THIS

POINT, I'’M NOT SO TERRIBLY

CONCERNED BECAUSE I'’M STILL

YOUNG ENOUGH TO DO SO.

WHAT CONCERNS ME IS WHEN I'M IN

MY 70s OR 80s-- HOPEFULLY, IF I

IF I GET THERE-- I MAY NOT BE

ABLE TO DO THAT.

>> Reporter: LIKE PELAEZ, 27% OF

OLDER AMERICANS WITH STUDENT

LOANS BORROWED FOR THEIR OWN

EDUCATION.

BUT MOST, MORE THAN 70%,

BORROWED FOR THEIR CHILDREN'’S OR

GRANDCHILDREN'’S EDUCATION.

PEOPLE LIKE NANCY KUKAY.

KUKAY, WHO'’S DIVORCED, TOOK OUT

ABOUT $46,000 IN HER NAME AND

CO-SIGNED FOR AROUND $34,000

MORE WITH HER SON, ANDREW, WHO

GRADUATED FROM THE UNIVERSITY OF

SOUTH CAROLINA IN 2008.

>> I ENTERED INTO THAT, NOW AS

I, IN HINDSIGHT, WITHOUT NEARLY

ENOUGH INFORMATION.

AND DIDN'’T KNOW WHAT I DIDN'’T

KNOW ABOUT FINANCIAL AID.

IT'’S VASTLY DIFFERENT FROM WHEN

I WENT TO SCHOOL.

I DIDN'’T HAVE TO BORROW TO GO TO

SCHOOL.

>> Reporter: KUKAY OBTAINED

ABOUT HALF OF THE $46,000 SHE

BORROWED FOR HER SON'’S EDUCATION

THROUGH A FEDERAL LOAN PROGRAM

CALLED "PARENT PLUS."

THE NUMBER OF PARENT PLUS

BORROWERS HAS GROWN BY 60% SINCE

2005 TO 3.5 MILLION AMERICANS.

THE NATIONAL CONSUMER LAW CENTER

SAYS SOME FAMILIES CAN BORROW

MORE THAN THEY CAN AFFORD UNDER

PARENT PLUS BECAUSE THE PROGRAM

LETS THEM BORROW AS MUCH AS THE

COLLEGE SAYS THEY NEED WITHOUT

VERIFYING THEIR INCOME.

>> AT NO POINT IS THE SCHOOL OR

THE FEDERAL GOVERNMENT SEEING IF

THE FAMILY CAN AFFORD TO REPAY

THIS LOAN.

>> Reporter: IS ANYONE ALONG THE

WAY SAYING, "HEY, IF YOU TAKE

OUT THIS AMOUNT OF MONEY, THIS

IS WHAT IT'’S GOING TO MEAN FOR

YOU"?

IS ANYBODY KIND OF GIVING A

WARNING TO FAMILIES?

>> SO, YOU KNOW, THERE IS SOME

VERY MINIMAL COUNSELING THAT IS

REQUIRED WHEN FOLKS TAKE OUT

FEDERAL LOANS.

THE OTHER COMPONENT IS, A LOT OF

THESE FAMILIES DON'’T HAVE A LOT

OF OTHER OPTIONS BECAUSE

EDUCATION IS EXPENSIVE.

SO, A LOT OF FAMILIES FEEL

TRAPPED, AND THEY FEEL LIKE THEY

HAVE TO TAKE OUT THIS, BECAUSE

THEY WANT TO PROVIDE FOR THEIR

KIDS AND THEY WANT THEIR KIDS

TO HAVE A BETTER FUTURE.

>> Reporter: AND THAT'’S EXACTLY

WHAT NANCY KUKAY WANTED FOR HER

SON.

SHE SAYS SHE WASN'’T TOO WORRIED

ABOUT ANDREW'S ABILITY TO PAY

OFF HIS LOANS ONCE HE GRADUATED.

>> I KEPT TELLING HIM, AND I

THOUGHT THIS WOULD BE TRUE, IS,

"THIS DEGREE WILL GIVE YOU A

CAREER THAT YOU CAN PAY THAT

OFF."

TURNS OUT NOT TO BE THE CASE.

HE GRADUATED IN 2008 IN THE

DEPTHS OF THE GREAT RECESSION,

AND JOBS WERE HARD TO COME BY.

>> Reporter: AFTER GRADUATING

WITH A DEGREE IN SPORTS

MANAGEMENT, ANDREW HAS WORKED

STEADILY, EVEN TAKING ON SECOND

JOBS AT NIGHT AND ON THE

WEEKENDS.

BUT HIS EARNINGS HAVEN'’T BEEN

ENOUGH TO KEEP UP WITH THE $400

AND $500 PAYMENTS ON THE ROUGHLY

$45,000 HE TOOK OUT, SO NANCY'’S

BEEN PAYING THE LOANS SHE CO-

SIGNED.

I SPOKE TO ANDREW OVER GOOGLE

HANGOUT.

>> I DID NOT THINK THAT YOU

WOULD BE THIS HARD TO PAY

STUDENT LOANS.

I DEFINITELY WENT IN TO SCHOOL

THINKING THAT I'’LL GET A DECENT-

PAYING JOB.

>> Reporter: ANDREW RECENTLY

LANDED A HIGHER-PAYING JOB AND

WANTS TO HELP PAY THE LOANS HIS

MOM CO-SIGNED.

>> I DON'’T WANT HER TO BE

SUFFERING FOR IT ANY LONGER THAN

SHE HAS TO, JUST FOR DOING THE

NICE THING AND CO-SIGNING ON A

LOAN.

WOULD I DO IT ALL OVER AGAIN?

NO.

I WOULD NOT DO IT AGAIN.

I WOULD STICK AROUND AND STAY

HOME FOR A COUPLE OF YEARS AND

GO TO A COMMUNITY COLLEGE NEAR

MY HOUSE.

>> Reporter: IN THE MEANTIME,

NANCY SAYS THE LOAN PAYMENTS

ARE WEIGHING HER DOWN.

>> IT GOVERNS EVERYTHING I DO,

EVERY DECISION I MAKE.

IT ALL REVOLVES AROUND MAKING

SURE THAT I HAVE THAT MONEY TO

MAKE THAT PAYMENT, EVERY SINGLE

MONTH.

>> Reporter: NANCY HAS

CONSOLIDATED AND GOTTEN SLIGHTLY

LOWER INTEREST RATES ON SOME OF

THE LOANS, BUT SHE EXPECTS

SHE'LL NEED TO WORK PART-TIME

AFTER SHE RETIRES.

AND SHE'’S ALSO CONSIDERING

MOVING TO MONTANA, WHERE THE

COST OF LIVING IS CHEAPER.

>> MY LIFE ISN'’T GOING TO BE THE

WAY THAT I'’D HOPED THAT IT WOULD

BE.

IT JUST SIMPLY ISN'’T GOING TO

BE.

>> Reporter: THERE'’S ALSO THIS

CATCH WITH FEDERAL LOANS AND

OLDER BORROWERS WHO CAN'’T PAY

THEM OFF: THE U.S. TREASURY CAN

GARNISH THEIR SOCIAL SECURITY

BENEFITS.

IN FACT, BETWEEN 2002 AND 2015,

THE NUMBER OF AMERICANS HAVING

SOCIAL SECURITY DISABILITY AND

RETIREMENT BENEFITS GARNISHED

BECAUSE OF UNPAID LOANS

INCREASED ALMOST 500%, TO

173,000.

>> WHO DO I GO AND GET THIS

MONEY BACK FROM?

>> Reporter: IT HAPPENED TO

55-YEAR-OLD MANUEL ROBERTS OF

BROOKLYN, NEW YORK.

HE PAID OFF MOST ALL OF THE

$13,000 HE BORROWED TO ATTEND

THE UNIVERSITY OF SOUTHERN

CALIFORNIA IN THE 1980s.

BUT AFTER LOSING A JOB, HE

DEFAULTED ON THE LAST $3,000

AND THEN SUSTAINED A SEVERE HEAD

INJURY IN 2002.

>> THEN, I WAS INJURED.

STREET VIOLENCE.

I WAS A VICTIM OF A VIOLENT

CRIME.

I WAS IN A COMA FOR TWO WEEKS OR

SO.

>> Reporter: ROBERTS RECEIVED

SOCIAL SECURITY DISABILITY

CHECKS FOR $1,300 EVERY MONTH.

BUT THE GOVERNMENT BEGAN

DEDUCTING $200 FROM EVERY CHECK

FOR THE DEFAULTED LOAN.

>> I WAS ALREADY IN A BAD

SITUATION.

IT'’S PLAIN TO SEE THEY JUST MADE

IT WORSE.

>> Reporter: THE SOCIAL SECURITY

DEDUCTIONS PUSHED ROBERTS TO THE

VERGE OF THE FEDERAL POVERTY

LINE.

IT TURNS OUT, THERE'’S A PROGRAM

FOR PEOPLE DISABLED LIKE ROBERTS

TO GET THEIR LOANS ELIMINATED,

BUT MANY PEOPLE DON'’T KNOW ABOUT

IT.

SO, NO ONE EVER SAID, "HEY, WE

NOTICE YOU'’RE GETTING DISABILITY

INCOME.

YOU MIGHT BE ALSO ELIGIBLE FOR A

DISABILITY DISCHARGE.

THIS COULD STOP"?

>> NO, THAT NEVER... THAT WAS

NEVER BROUGHT TO ME BY ANYBODY.

>> Reporter: ROBERTS'’ ATTORNEY

HELPED HIM GET THE DISABILITY

DISCHARGE AND IS ALSO HELPING

HIM AND SIX PEOPLE WITH SIMILAR

STORIES SUE THE HEADS OF THE

FEDERAL DEPARTMENT OF EDUCATION,

TREASURY AND THE SOCIAL

SECURITY ADMINISTRATION,

ALLEGING THAT THEY DON'’T DO

ENOUGH TO LET PEOPLE KNOW ABOUT

THE DISABILITY DISCHARGE

PROGRAM.

THE FEDERAL DEPARTMENT OF

EDUCATION DECLINED AN ON-CAMERA

INTERVIEW WITH PBS NEWSHOUR

WEEKEND AND DID NOT RESPOND TO

WRITTEN QUESTIONS.

THE SOCIAL SECURITY

ADMINISTRATION AND THE TREASURY

DEPARTMENT ALSO DID NOT COMMENT.

U.S. SENATORS RON WYDEN OF

OREGON AND SHERROD BROWN OF OHIO

ARE SPONSORING LEGISLATION TO

ELIMINATE THE PRACTICE OF

GARNISHING SOCIAL SECURITY

BENEFITS FOR UNPAID LOANS, BUT

THE BILL'’S GONE NOWHERE SO FAR.

NANCY KUKAY'’S SOCIAL SECURITY

CHECKS WON'T BE AT RISK BECAUSE

SHE KEEPS UP WITH HER MONTHLY

STUDENT LOAN PAYMENTS.

FOR OTHER PARENTS TRYING TO

FIGURE OUT HOW TO PAY FOR

COLLEGE NOW, SHE HAS THIS

ADVICE.

>> I WOULD STRONGLY ENCOURAGE

THEM TO BECOME EDUCATED IN EVERY

ASPECT OF FINANCIAL AID.

TALK TO THE COLLEGE FINANCIAL

AID PEOPLE.

I DIDN'’T DO THAT.

THAT'’S A HUGE MISTAKE.

I MADE ASSUMPTIONS THAT TURNED

OUT NOT TO BE TRUE.

AND MINE IS A CAUTIONARY TALE.