Student Loan Debt Worsens Financial Struggles Around Holidays as Trump Administration Ends Save Plan
A survey by TICAS and Data for Progress finds that 40% of student loan borrowers say their loans worsen their ability to cover basic needs such as food, housing, and transportation, especially during the holiday season. The survey also shows that more than one-third of borrowers cannot cover healthcare costs, 52% cannot save for retirement, and 45% report that their housing plans are affected by their debt.
The Trump administration is ending the Biden-era Save plan, an income-driven repayment program launched in 2023 designed to cut undergraduate loans in half and offer near-zero payments for some borrowers. The Department of Education will halt new Save enrollments, deny pending applications, and move existing Save borrowers into alternative repayment plans. Experts warn that removing the Save plan will raise monthly payments and leave borrowers with limited access to affordable alternatives.
Individuals like Ben L, a 36-year-old from New York with about $95,000 in private Sallie Mae loans and credit-card debt, report monthly student loan payments of about $1,850, forcing him into a paycheck-to-paycheck lifestyle. Ben describes the holidays as unaffordable and relies on friends to help him stay afloat, making participation in gift-giving impossible.
Erin O, a 31-year-old non-profit worker currently in the Save and Public Service Loan Forgiveness (PSLF) programs, expects her federal loan payments to double or triple once Save ends. Owing $34,680, she plans a lean Christmas with family in Denver and Texas. The PSLF program also faces uncertainty due to ideological limits on eligible organizations under current administration policies.
