MONTAIN VIEW, Calif., Nov. 21, 2023 /PRNewswire/ -- A recent survey sheds light on the financial challenges that Americans are facing this holiday season as student loan repayment resumes. According to a study by Study.com which surveyed 1400 consumers and focused on teachers' experiences, the majority of consumers plan to cut expenses and nearly a quarter of consumers plan to cut their holiday spending by $250 to $500, suggesting a significant change in their holiday budgets.
Based on the data collected, the following conclusions were drawn:
There are 60 percent of consumers who plan to reduce their holiday spending - Teachers, on the other hand, have a stronger commitment, with 65 percent planning to cut their Thanksgiving expenditures. Consumers are resolute in their plans to cut costs in the December holiday season, with 63 percent stating that they plan to do so. It is the teachers who are determined to reduce their December holiday expenditures, with 72 percent determining to do so.
The study also explored the financial challenges that consumers and teachers face in managing their expenses and repaying their loans. Some of the key findings included:
It is estimated that the most common outstanding loan amount for both groups falls between the ranges of $20,000 and $30,000..There is a large majority of respondents in both groups, 47 percent of consumers and 59 percent of teachers, who have already adjusted their budgets to accommodate loan repayments, according to the survey..It has been found that the majority of consumers (41 percent) and teachers (50 percent) are utilizing their savings as a way to pay off their student loans.There is a considerable number of respondents, 37 percent of consumers and 51 percent of teachers, who have already taken a second job or are planning to take one in order to meet their financial obligations.
There is a considerable number of respondents, 37 percent of consumers and 51 percent of teachers, who have already taken a second job or are planning to take one in order to meet their financial obligations.
As a result of the survey, it was found that the stress caused by loan repayments has impacted personal relationships and that 54 percent of consumers and 61 percent of teachers expressed decreased confidence in the loan system as a result of federal government mistakes.
Taking into account these financial challenges, the study highlights the most common areas where consumers and teachers intend to reduce their expenditures as a result:
Consumers should be aware of the following:
Dine out: 49 percent; Entertainment: 48 percent; Personal Shopping: 43 percent; and Services: 53 percent;
The following information is for teachers:
In terms of entertainment, the percentage is 50 percent - Dining out is 48 percent - Vacations are 46 percent
It has been found that 22 percent of consumers and 26 percent of teachers require an additional monthly income of between $251 and $500 in order to make loan repayments.
A survey conducted online by Pollfish on behalf of Study.com took place on October 24, 2023 across the United States. The survey polled 1,400 individuals with student loan debt, 500 teachers and 900 consumers. All of the participants in the study were between the ages of 18 and 54. Among them, 62% belong to the key 25 to 44-year-old demographic, and they give a critical assessment of their financial circumstances following the repayment of student loans.

Source prnewswire