Readers Respond: Return of student loan payments limits spending, savings

Your Oregon News asked readers if the return of student loan payments after the pandemic pause affects their household.

Many readers who hold their own student loan debt report feeling a budget crunch from the return of payments (especially from predatory private lenders with high interest) coupled with inflation and stagnant wages—a national issue that is bleeding over into other generations, as retired readers report helping their children with the inflated costs of education, while still more report they don't want to pay for the cost of others' educations through federal taxes.

In an unofficial survey, 56% of readers said yes, student loans affect their household. 37% said no, it does not. About 5% of respondents said more than one person in their household has student loan debt.

About 40% of respondents said student loan payments are not affecting budget cuts in their household, but others are cutting down on entertainment and hobbies, eating out, groceries, investments and savings, travel, gifts, holidays, newer cars and even healthcare.

About 22% said they are cutting multiple budget items directly to afford student loan payments.

Here’s what readers are saying about the return of student loans affecting their lifestyle:

Reader: “Paid my daughters off as she lives out of country… it was a small amount. And why she is living out of country…college is cheaper.”

Reader: “Living paycheck to paycheck.”

Reader: “Not at all.”

Reader: “I live with a chronic illness and have now had to get a second job again to help pay mine and my spouse's loans (he also works). It has put my health at a serious risk again and will probably soon add medical bills to our debt again.”

Reader: “It’s impacted travel, food costs and day to day living as everything else is on the rise but pay stays the same.”

Reader: “It hasn’t really. I took out the loans, it’s my responsibility to pay them off.”

Reader: “Thanks to pay as you earn our student loan payments are manageable and we've already made our first two payments on time.”

Reader: “Reduces money for groceries and not spending on holidays or travel. Not eating out at all.”

Reader: “Not significantly. We knew it had to be paid. Right thing to do.”

Reader: “Unable to consider a different car due to the extra payment, harder to cover the costs of daycare and groceries, etc.”

Reader: “I am struggling to pay my monthly bills.”

Reader: “Not at all, I paid my loans off early in my career. Using most disposable income to reduce principal faster.”

Reader: “Inability to save or take vacations. Less grocery shopping. More money/bill juggling. More general stress.”

Reader: “This has made things really tight for my family. The cost of living was expensive as is, and then this really just took the little bit of extra money we had.”

Reader: “All we pay for now is rent, utilities, and student loans. Our kids are not doing any activities unless we can volunteer and they don’t have to pay fees.”

Reader: “Both my husband and I are repaying back school loans, the loss of income affects us substantially.”

Reader: “Increased stress 100%.”

Reader: “We are unable to put money away for home repairs and savings.”

Reader: “Honestly, it’s affected several areas of my life. I’ve been paying since 2011 and I owe more now than when I graduated. It’s a huge burden.”

Reader: “My savings for retirement will be much smaller going forward, if I can put anything aside at all.”

Reader: “Back to worrying about interest charges. We are retired but have a loan for our youngest son’s education. We were in hopes that the loan would be forgiven because we are in our 70’s but the Federal Parent Plus loan is not eligible for forgiveness.”

Reader: “I'm a strong believer that student loans need to be repaid. The return is excellent and a long time coming.”

Reader: “The anticipated income from the higher education has not kept up with unanticipated higher cost of living.”

Reader: “Additional stress and anxiety that repayments starting as inflation is still climbing.”

Reader: “I've cut back on almost everything and still can't make it. It's unmanageable.”

Reader: “I was already spread thin, so this is just so much more stress.”

Reader: “Making life extremely harder because of inflation and the cost of normal daily goods.”