Nansi Lynch, a Rhode Island school bus driver, is heading toward retirement with $156,000 in education debt despite never having attended college herself.
Here's what to know
According to Business Insider, the 60-year-old finished high school and has driven a school bus for close to three decades. She borrowed through the federal Parent Loan for Undergraduate Students program to help pay for both of her children's schooling, and she said those loans are now delaying her retirement.
The federal loans Lynch used carried a 9.07% interest rate — the highest charged under the PLUS program. She had been paying $238 a month through an income-driven repayment plan, but she said she fears that amount could increase after her forbearance ends.
Lynch's borrowing began with costs tied to her daughter's attendance at Salve Regina University. She later added to the balance for her son's studies at Rhode Island College and a community college. Because her primary bus-driving work follows the school-year calendar, she relied on deferments when she was not working, and interest kept accumulating, the outlet noted.
According to Institute of Education Sciences data, PLUS debt climbed from $62 billion in 2014 to nearly $110 billion in 2024. The outlet also reported that the Trump administration imposed a $65,000 lifetime borrowing cap per dependent on new PLUS loans, replacing a system under which parents could borrow up to the full cost of attendance.
"You can just keep on applying for more student loan money," Lynch said, per Business Insider. "What happens with that kid after four years? What happens if they can't get a job and the degree in their field of study?"
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More background
Beyond the monthly payment, Lynch said the debt is reshaping her long-term plans. Her hope of retiring in the next five years no longer feels realistic.
"I don't get rid of it until I turn 75 years old," Lynch said, according to Business Insider. "I've never heard of something so disastrous in my life."
Lynch applied for a Small Business Administration loan to move her gym where she teaches classes in between bus rides to a better location, but she was denied because the debt in her name — including her mortgage and student loans — was too high.
That is why policy changes to reduce borrowing may not solve the issue. A Brookings Institution analysis noted that "while lower-income families borrow smaller absolute amounts, they face significantly higher debt-to-income ratios," Business Insider reported.
What can be done?
The borrowing cap could stop some families from taking on PLUS debt. But Lynch's experience shows that steep interest rates can exacerbate accumulating debt.
If that debt is attached to a parent, it can interfere with retirement planning, household finances, and even the ability to secure small-business funding.
Lynch said she does not want her children to take over the payments because they have bills of their own. So, for now, she expects to keep working.
"I heard from the college kids at the gym all summer long that they couldn't find a job," Lynch said, according to Business Insider. "So you've got all these kids that have all this student-loan debt, and they can't get jobs to pay the bills. The whole thing is broken."
Where can I learn more?
These stories look at families' other financial strains.
• Across the U.S., families are borrowing for groceries as savings shrink and bills go unpaid.
• Researchers found climate change is reducing Americans' income, with losses compounding over time.
• Across the United States, high temperatures have cut wages and strained the economy.
• In Oregon, growing financial strain is deepening inequality as climate pressures intensify.
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