Older Borrowers Delaying Major Life Decisions Due to Student Debt, RadCred Study Finds

Glendale, CA, Nov. 06, 2025 (GLOBE NEWSWIRE) -- RadCred, an AI-powered loan platform, today released findings from its latest debt survey revealing that 64% of borrowers over 40 say outstanding student loans are delaying major life decisions, including home purchases, retirement planning, and starting families.

This comes as federal student loan collections resumed in May 2025, triggering widespread credit damage. Data from the Federal Reserve Bank of New York shows 18% of borrowers aged 50 and above are now seriously delinquent (90+ days overdue), nearly double the 10% rate from 2019. TransUnion confirms borrowers experiencing default have seen credit scores drop by as much as 175 points for super-prime borrowers.

Older Borrowers Face Perfect Storm of Debt and Delinquency

RadCred's survey of 2,000+ borrowers reveals the impact of tightening collection policies:

64% report student debt delays major life decisions 71% say they need better refinancing or consolidation options 58% are struggling to balance student loans with mortgage and credit card payments 52% co-signed or took loans to support children's education 66% would consider AI-matched lending alternatives

The $1.814 trillion total U.S. student loan burden reflects a structural problem: older Americans hold record debt. Federal data shows borrowers aged 50-61 average $46,790 per person, while 35-49-year-olds carry $44,288. Many pay dual obligations- their own education loans plus support for their children's.

"Student debt isn't a young-person problem anymore. It's delaying retirement, preventing home ownership, and creating impossible choices for people who thought they'd be debt-free.", said Alex Zadorian, CEO of RadCred.

Credit Score Collapse Creates Secondary Crisis

Collections resumption created an unintended consequence: credit damage blocks access to better borrowing options. Borrowers facing 90+ day delinquency lose 100+ points on FICO scores, making refinancing nearly impossible through traditional lenders, the institutions offering the best rates.

"Older borrowers are caught in a trap. Credit scores get damaged, then they're locked out of lending products that could help manage debt.", said Tom Brewer, AI Analyst at RadCred.

Consolidation and Alternative Lending Forward

RadCred's data shows 71% of struggling borrowers seek better refinancing options. For those whose credit has been damaged, traditional banks remain inaccessible. Alternative lending platforms offering debt consolidation and personal loans, evaluated through alternative data beyond credit scores, provide relief.

Borrower Challenge% AffectedDebt delays major decisions64%Struggling with multiple debts58%Seeking refinancing options71%Open to AI alternatives66%

What's at Stake

RadCred's research highlights a critical gap: older borrowers need credit access, but traditional lending became inaccessible due to collections-related credit damage. Without alternatives, millions face wage garnishment as they approach retirement.

The federal student loan system assumed borrowers would repay within 10 years. Today, with many carrying debt into their 50s and 60s, different solutions are needed. Consolidation loans and responsible lenders evaluating borrowers beyond credit scores become necessities.

About RadCred

RadCred is a U.S.-based AI-powered loan marketplace connecting borrowers with licensed lenders offering personal, installment, and debt consolidation loans. By evaluating alternative financial data, income stability, employment history, payment patterns, RadCred expands credit access for borrowers whose traditional credit scores have been damaged.

Visit www.radcred.com | Media Contact: [email protected]

Disclaimer

RadCred is not a direct lender and does not make credit decisions. Loan terms, rates, and approvals depend on individual lenders and state regulations. This release is for informational purposes only. Consumers should review all lender disclosures before accepting offers.