I’m 67 years old and still have $35K in student debt that I can’t afford to pay on my fixed retirement income — what will happen to that debt when I die?

Using the 4% rule, that amounts to about $667 of income per month from savings. Combined with Social Security, that leaves the average senior with $2,585 to cover everything from housing costs to groceries, and beyond. That’s hard enough without student loan payments thrown into the mix.

Yet, a growing number of older Americans are carrying student debt into retirement.

In fact, borrowers aged 60 and over now account for 8.3% of student loans, according to the Education Data Initiative. That cohort has an average outstanding loan balance of $37,360.

But what happens to that debt once you pass away?

What happens to student debt after you die?

Whether or not your student loans are discharged upon your death depends on the type of loan you signed.

The good news is that federal borrowers are generally safe in this regard, as those loans are discharged once the borrower dies. Parent PLUS loans are also discharged if the parent holding the loan passes away, or if the student associated with those loans dies.

However, with private student loans, things can get a little more muddled. Some private lenders will discharge student loans upon the death of the borrower after the required proof of death is submitted. But it’s not always guaranteed.

In some cases, private lenders may go after the co-signer on a loan. If there isn’t a co-signer, the deceased person’s estate could be held responsible for repaying the private student loan.

So, as a hypothetical, if you owe $35,000 in loans to a private lender and have assets worth $100,000, your heirs could potentially lose about one third of their inheritance.

What to do when you’re retiring with student loan debt

If you have federal loans, one option to consider is enrolling in an income-driven repayment plan. The government offers a few plans that can adjust your payments according to your income and family size, thus making repayments more affordable.

Depending on the plan option you select, your loan payments wouldn’t surpass 10% or 20% of your discretionary income. And, once you hit 20 or 25 years of student loans, the remaining balance is typically forgiven.

Another option to consider is taking out a life insurance policy. If you don’t already have one, you may hit some roadblocks if you are over the age of 55. You may find you’ll have more luck securing a more senior-friendly shorter-term policy.