x
Breaking News
More () »

Connect the dots: paying off student debt with your retirement fund

The new bill would allow anyone to take money out of their 401K or IRA and use the money to pay off student loans

$1.6 trillion dollars. That's a huge number no matter what you're talking about and that's how much debt Americans currently owe when it comes to student loans.

A new bill could help relieve some of our debt, but your future may end up paying the price.

The bill would allow Americans to take out over $5,200 a year from their 401K or IRA to pay for college or to repay student loans.


Supporters say it will help reshape the way people pay for higher education while critics argue it will create more problems than it solves.

Experts point out that most people are already struggling to save. A Northwestern Mutual study estimates a quarter of us haven't even started saving for retirement and 22% have saved less than $5,000.

But there could be a silver lining. One financial expert says the bill may encourage larger contributions to retirement plans.

Regardless student loan debt will remain a top issue among presidential candidates in 2020.

Before You Leave, Check This Out