Americans With Student Debt Are Cutting Household Spending to Make Loan Payments

Core Insights - Student loan borrowers are reducing discretionary spending to manage loan repayments, with many successfully handling their loans, but an increasing number are facing difficulties [2][5][6] Spending Adjustments - The typical student loan borrower has reduced their weekly spending by approximately $12.20 for every $10,000 of student debt, leading to an annual spending cut of about $1,590 for the median borrower with a $25,000 balance [3][4][9] Borrower Status - Out of 18.8 million borrowers in repayment, nearly 13 million are in good standing, while about 25% expect to pay off their debt by next year [6][9] - Over 4 million borrowers are nearing default, a figure that is more than eight times the pre-pandemic delinquency rate [7] Economic Context - Borrowers are facing challenges due to rising prices from tariffs and a slowing labor market, complicating their ability to budget for loan payments [8]