recent survey sheds light on the financial challenges faced by Americans this holiday season as student loan repayments resume. Study.com surveyed 1400 consumers with a focus on teachers’ experiences, finding that the majority of consumers plan to cut costs and nearly a quarter of consumers plan to cut their holiday spending by $251 to $500, indicating a substantial adjustment in their holiday budgets.

The Data

–  60 percent of consumers plan to reduce holiday spending
–  Teachers demonstrate an even stronger commitment, with 65 percent planning to reduce their Thanksgiving expenses.
–  For the December holiday season, consumers are resolute in their plans to cut costs, with 63 percent looking to reduce their holiday spending.
–  Teachers lead the way with 72 percent of them determined to decrease their December holiday expenditures.

The study also delved into the financial challenges faced by both consumers and teachers in managing their expenses and repaying loans. Some key findings include:

–  The most common outstanding loan amount for both groups falls in the range of $20,000 to $30,000.
–  The majority of respondents in both groups, 47 percent of consumers and 59 percent of teachers have already made budget adjustments to accommodate loan repayments.
–  A significant portion of both consumers (41 percent) and teachers (50 percent) are utilizing their savings to pay off their loans.
–  A substantial number of respondents, 37 percent of consumers and 51 percent of teachers have already taken or are planning to take a second job to meet their financial obligations.

The survey revealed that stress caused by loan repayments is impacting personal relationships and 54 percent of consumers and 61 percent of teachers expressed decreased confidence in the loan system after federal government errors.

Financial Challenges

In response to these financial challenges, the study highlights the most common areas where consumers and teachers plan to cut expenses:

For Consumers:

–  Dining out: 49 percent
–  Entertainment: 48 percent
–  Personal shopping: 43 percent

For Teachers:

–  Entertainment: 50 percent
–  Dining out: 48 percent
–  Vacations: 46 percent

Additional monthly income needed for loan repayments shows that 22 percent of consumers and 26 percent of teachers require between $251 and $500.

Survey Methodology

The survey was conducted online across the United States on Oct. 24, 2023, by Pollfish on behalf of Study.com. The survey polled 1,400 individuals, 500 teachers, and 900 consumers, each with federal student loan debt. The participants, all between the ages of 18 and 54—with a notable 62% falling into the key 25 to 44-year-old demographic—provide a critical view of their financial status in the wake of student loan repayment obligations.

For more information and to see the full survey visit here.

Source: Study.com