July 2019 Senior Digest

Connelly Law Offices, Ltd. has satellite offices in Eastern Connecticut and Oak Bluffs, Massachusetts for your convenience. Contact us at 855-724-9400 Volume 15, No. 7 July 2019 Student Loan Debt Takes a Huge Financial Toll on Seniors By Herb Weiss results that focus on the key role played For Senior Digest by age 50 and older Americans in helping “someone else pay for college and other As the 2020 presidential campaign heats post high school education.” up, Democratic candidates are zeroing in (The survey specifically included only on a key domestic issue for 44 million vot- those individuals who have not yet fully ers, carrying $1.5 trillion in student-loan paid off the debt or who have paid it off debt. Their proposals range from free-pub- within the past five years.) lic college for anybody, forgiveness of all Of those 50 and over who helped “some- college loans up to $50,000, free commu- one else,” 80 percent helped a child, com- nity college, to refinancing college loans. pared with 6 percent who helped a spouse With the national political spotlight put or partner; 8 percent, a grandchild and even on student-loan debt, many are assum- smaller percentages “who helped other rel- ing that this issue impacts only younger atives or friends.” Americans. That is not the case. A newly One interesting finding of the PPI report released AARP Public Policy report says was that the most common involvement by it’s a skyrocketing problem impacting mul- people aged 50 and older was cosigning a Photo courtesy dcourier.com tiple age groups. Over recent decades, the loan (45 percent), while a smaller percent- report highlights the important role that or partner; 8 percent, a grandchild, and es, such as for a home, their children’s ed- age (34 percent) ran a balance on a cred- older Americans play in financing college even smaller percentages ‘who helped oth- ucation or for their own retirement,” adds it card and 26 percent took out a Parent education for their children, grandchildren er relatives or friends.’ Trawinski, who warns that the long-term PLUS loan. and other family members. Student Loan Debit Hits Seniors financial security of seniors can be threat- Among those who co-signed a private Federal Reserve data show that Amer- Hard in their Pocketbooks ened by student loan debt. student loan, nearly 49 percent made a pay- icans owed $1.5 trillion in student loan “It is stunning that more families are tak- The researchers noted that most older ment on the loan, often because they want- debt as of December. An updated analy- ing on such sharply greater amounts of stu- borrowers hold loans taken out for their ed to proactively assist the student borrow- sis shows people aged 50 and older owed dent debt than in the past,” says Lori Traw- own education, and the percentage of bor- er. Twenty-five percent said they had to 20 percent of that total, or $289.5 billion, inski, director of Banking and Finance at rowers aged 50 and older in default is much make a payment after the student failed to a more than fivefold increase from $47.3 the AARP Public Policy Institute, in a May higher than for younger borrowers. Data do so. billion in 2004. 15 statement released with the report, “The also show that Parent PLUS (direct federal The survey asked the one quarter of According to the PPI findings, of those Student Loan Debt Threat: An Intergenera- loan) borrowers aged 65 and over are fac- survey respondents who had taken out a age 50 and over who helped pay for ‘some- tional Problem.” ing higher rates of default than younger age Parent PLUS federal loan, and who had one else,’ 80 percent helped a child, com- “For younger families, this burden im- groups, they say. pared with 6 percent who helped a spouse pedes their ability to save for other purpos- The 10-page PPI report includes survey See Debt, page 8 New Report Discourages Use of Dietary Supplements for Brain Health Experts Recommend Other Ways to Keep Your Brain Healthy, Including Exercise and Diet Washington—On June 11th the Global Council on Brain “It’s tempting to think you can pop a pill and prevent Health (GCBH) released a new report that concludes di- dementia—but the science says that doesn’t work,” said etary supplements do not improve brain health or prevent Sarah Lenz Lock, AARP Senior Vice President for Policy cognitive decline, dementia or Alzheimer’s disease, and and Executive Director of the GCBH. “The good news is, recommends that most consumers not take supplements we know what will help to keep your brain healthy: exer- for this purpose. The GCBH reviewed the scientific evi- cise, a healthy diet, plenty of sleep, challenging your think- dence on various supplements and determined it could not ing skills, and connecting with others. Rather than buying endorse any ingredient, product or formulation designed a dietary supplement, spend your money on new walking by the Food and Drug Administration, dietary supplements for brain health. Instead, they recommend a healthy diet shoes or a salmon dinner.” are not considered medications—they can be sold without as a way for most people to get the nutrients they need to Many dietary supplements marketed to consumers as premarket review of their safety, efficacy or truthfulness benefit their brains. The GCBH is an independent organi- improving brain health have claims like “clinically shown of their claims. Brain health supplements generated $3 zation, created by AARP in collaboration with Age UK, to to help with mild memory problems associated with ag- billion in sales in 2016, and new research conducted by provide trusted information on how consumers can main- ing” and “scientifically proven nutrients for a healthier tain and improve their brain health. brain.” While all medications sold in the U.S. are regulated See Supplements, page 8 ’Tis the Season “Ask the “Government of the people, by the people, for for Grilling Lawyer” the people, shall not perish from the earth.” - page 4 - page 19 - Abraham Lincoln 2 July 2019 • Senior Digest The Future We Don’t Like to Think About We have all heard some threat, like a hurricane that from Washington State that of payments, they would be also cover home food deliv- of the many statistics about could demolish my house, has just created a statewide able to access up to $100 eries and transportation to a growing crisis in being is so stressful that I “take social insurance program to a day to pay for assistance medical appointments. An able to afford home care as flight”--just look the other help pay for long-term care. with activities of daily liv- exception to the ten-year we age. If we have reached way. This despite the fact requirement would be that age 65, we have a 50% that there’s a much higher if someone suffered a cata- chance of making it to 85- probability of our needing “Half of 65 year-olds strophic health event like a --but also a 35% chance future care than having our severe stroke they could re- that we will need some paid house destroyed. A third ceive help after three years. care in our future. Unfor- bias is amnesia---we may today have less than In Washington state tunately, studies show that have seen a parent or older a broad-based coalition a great many of us haven’t relative experience serious worked hard for several saved nearly enough mon- health conditions as they $71,000 in non-real years to create this pro- ey to pay for that care. Half aged, but forget the pain gram. We will be following of 65 year-olds today have it caused. As he put it, “If estate assets. its progress closely, as we we remembered painful have relationships with sev- events, no one would ever eral long-term care experts Senior Digest less than $71,000 in non-re- learn to ride a bike or have Twenty-five percent there. Similar legislation is 21 Industrial Court al estate assets. Twenty-five a second child.” One more being considered in Cali- Seekonk, MA 02771 percent of us are relying ex- bias he describes as “herd fornia, Illinois and Michi- clusively on Social Securi- thinking”---no one else is of us are relying gan. Stay tuned. Email ty income to meet our daily planning for this either, so [email protected] Telephone needs. why should I? William F. Flynn Jr. is 508.336.6633 Why haven’t we prepared What can be done? Mey- exclusively on Social executive director of the Web Site for our futures? Robert er says fear tactics---such as Senior Agenda Coalition. www.seniordigestnews.com Meyer, a risk management ads portraying worst-case Contact him at seniora- expert, offered some expla- scenarios---won’t work. Security income to meet [email protected]. PUBLISHED nations in a recent journal They just invoke the fight MONTHLY article. He said we all have or flight response. He sug- our daily needs.” biases against planning gests designing programs Published by that people would have to Senior Digest for our future. One bias is optimism---that a bad fall opt-out of. Then our bias- Graphic Design/Layout: or Alzheimer’s will hap- es about not thinking about All residents would pay 58 ing, up to a lifetime total cap TCI Press Inc. pen to someone else, not the future could be positive cents on every $100 of in- of $36,500.

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