A new survey shows that 42% of federal student loan borrowers say their monthly payments make it harder to cover basic needs such as food and housing, CNBC has reported. The survey, conducted by Data for Progress and The Institute for College Access & Success (TICAS), highlights growing financial strain among Americans with education debt.More than a third of borrowers, or 37%, reported that it is more challenging to meet health-care expenses because of their student loans, while 52% said their ability to save for retirement has declined, the CNBC cited. Nearly 30% of respondents said the debt has negatively affected their plans to marry or start a family.Borrowers struggle to make ends meet“Highly educated individuals are budgeting in ways they never imagined just to survive,” Carolina Rodriguez, director of the Education Debt Consumer Assistance Program in New York, told CNBC. “The food line item is often reduced, but there is only so much they can cut,” she added.The survey polled more than 1,000 self-identified federal student loan borrowers in September. The results show a growing number of borrowers are falling behind on payments, with more than five million currently in default. That figure could rise to roughly 10 million under current trends, the Trump administration noted, as cited by CNBC.Rising balances and stagnant wages increase pressureThe average federal student loan balance now stands at around $39,000, up from roughly $29,000 in 2015 and $18,000 in 2007, according to higher education expert Mark Kantrowitz, in conversation with CNBC. Wage growth for new college graduates has been limited, with median annual salaries at $60,000 in 2024, compared with $60,595 in 2020, CNBC reported, citing the Federal Reserve Bank of New York. More than 40% of recent graduates are considered “underemployed,” working in jobs that do not require a bachelor’s degree.
Survey by Data for Progress and TICAS, cited by CNBCTrump-era changes worsen repayment challengesRecent changes under the Trump administration have delayed access to new repayment plans and loan forgiveness, leaving borrowers with larger monthly obligations. Michele Zampini, senior director of college affordability at TICAS, told CNBC, “Had these proposals come to pass, far fewer borrowers would now be in a position to fall behind.”Trump’s One Big Beautiful Bill Act will phase out several affordable repayment plans, including unemployment deferments, making it more difficult for borrowers to pause payments after job loss, CNBC reported. Experts warn that defaults are likely to rise as living costs increase and repayment protections are removed.Growing impact on daily lifeIn addition to financial strain, student loan debt affects daily decision-making. According to the CNBC, 30% of borrowers reported that debt has limited their ability to marry, start a family, or plan major life events. The Biden administration had sought to provide relief through debt forgiveness and lower payments, but legal challenges blocked those provisions.Over 42 million Americans currently hold student loans, with outstanding debt exceeding $1.6 trillion, the Congressional Research Service reported to CNBC. Borrowers are now balancing education payments alongside essential living costs, creating a widespread financial challenge across the country.
