I took out parent loans to help my two kids go to college and succeed in life  — now I’m 70 years old and $200,000 in debt. How can I dig out?

Let’s say, for example, that Raymond took on student debt to help his son and daughter earn their degrees. The problem is, Raymond now finds himself at age 70 with $200,000 in debt and no clear way to dig out of the hole.

So, what can Raymond do in this difficult situation?

Understanding repayment options

Raymond must start by taking a close look at the debt he’s carrying so he can understand his options.

“I think the first step here is to figure out exactly what kind of loans you have,” Steve Sexton, CEO of Sexton Advisory Group, told Moneywise. “Federal Parent PLUS Loans, federal consolidation loans and private student loans all have different rules and repayment options.”

Sexton explained that federal student loans may offer very flexible payment plans. “Depending on how and when the loans were consolidated, some borrowers may qualify for an income-driven repayment option, which will help make that monthly payment much more manageable,” he said.

Raymond would need to have consolidated his PLUS Loans and had the consolidation loan disbursed before July 1, 2026, to be eligible for an income-driven payoff plan. But even if he didn’t do that, he may still be able to consolidate his PLUS Loans to access the tiered standard plan, which gives him a longer repayment timeline (and lower monthly payments).

If he has private student loans, consolidation isn’t an option, but refinancing to reduce his rate could be, if he can qualify for a new loan with a lower rate than his current debt. If he can’t refinance, though, he’s stuck with the payment arrangement he agreed to when he borrowed.

Regardless of whether his student loans are federal or private, Sexton explained that “with a balance that large, the goal may not be to pay it off as quickly as possible. The goal may be to keep the loan in good standing while preserving enough money to live comfortably.”

Prioritizing retirement

While Raymond may want to abandon the idea of early debt payoff, he still must make sure he doesn’t get into financial trouble with how he handles his loans.

“Don’t ignore the loans,” said Michael McAuliffe, president and founder of Family Credit Management. “If they go into default, you can have part of your Social Security taken each month by the government.”

As long as Raymond stays current on payments, though, there may be little reason to do more, especially since Sexton said his first focus must be on his own future. “An important point worth noting,” said Sexton. “Federal Parent PLUS Loans can generally be discharged if the parent borrower dies. That doesn’t mean you ignore the debt, but it is one more reason I would be very cautious about exhausting retirement assets just to get the balance to zero.”

If Raymond can pay an affordable minimum monthly payment while still having money left over for everything else he needs, doing that may be better than aggressively trying to repay everything he owes ASAP.

“Don’t assume the answer is to start liquidating accounts just to make the balance go away,” warned Sexton. “At that age, the bigger priority is protecting your overall retirement. You still need money for housing, healthcare, everyday expenses and potentially another 20-plus years of living costs. Draining an IRA or 401(k) to aggressively pay down student loans can create a tax bill and leave you with less flexibility down the road.”

Get creative in finding extra cash

If Raymond decides to be more aggressive about paying off his debt, he can also explore ways to generate extra money to send to creditors.