Student loans, debt repayment and retirement

You also can stay out of default by keeping on top of loan details and making sure all payments are going to the right place, which is usually a student loan servicer. Whether you have

federal or private student loans, the servicer should be able to supply you with all pertinent information related to your account, including the balance due, required monthly payment,

interest rate and payoff date. Researchers at the Center for Responsible Lending say that the rise in the numbers of older Americans in default could be avoided if loan servicers provided

better assistance and information to financially challenged consumers. Until such calls are heeded, it's up to you to be proactive in reaching out to your loan servicer. Also,

double-check all forms and ask for monthly statements on all student loans. Need to find your loan servicer? The Department of Education maintains a list of federal student loan servicing

companies. UNDERSTAND YOUR COSIGNING RIGHTS AND OBLIGATIONS If you've cosigned a student loan for your children or grandchildren, you're not alone. Some 73 percent of older

Americans with college debt took on loans for a younger family member, the CFPB reports. (The rest borrowed for their own education or that of a spouse). "Unfortunately, helping your

kids go to college by going into debt yourself works against your own self-interest and your ability to retire," says Rebekah Barsch, vice president of planning at Northwestern Mutual.

But such indebtedness happens all too often even though other more prudent options likely exist, she says. "The reality is that students have choices about which college to attend. They

can pick a school where tuition is $50,000 a year or one that's $10,000 a year. Students can also get scholarships. But there are no scholarships for retirement," Barsch says. If

you do decide to serve as a coborrower, don't simply assume that once your family member graduates, he or she will make payments. Be very clear with relatives about exactly who will be

repaying those student loans, and spell out any agreements in writing. Otherwise, if your child or grandchild cannot make payments on time, your finances and credit could take a nosedive. If

you're already repaying a student loan on behalf of your relatives, it's not unreasonable to ask them to wean themselves off of your support and make the loan their

responsibility. Try to establish a time frame when your burden can be lifted so you can enjoy your later years. Additionally, be aware that some lenders, such as Sallie Mae, allow the

borrower to obtain a "cosigner release," which legally lets you get taken off the hook for a student loan under specific preset conditions.