A recent survey revealed that a staggering 40% of student loan borrowers report their debts have hindered their ability to meet basic needs like food, housing, and transportation—burdens that are particularly overwhelming during the holiday season.

For instance, Ben L, who holds degrees from Georgetown University and Columbia University and earns a six-figure salary at a biotech company, finds himself ensnared in a financial struggle. Despite his professional success, he faces significant student debt, amounting to $95,000 from private loans taken during his master’s program, which he completed in 2018, alongside accumulated credit card debt from living in New York City for the past 15 years.

“I have never once used all of my vacation days because I cannot afford to go anywhere,” he lamented.

Ben’s monthly student loan payments of approximately $1,850, combined with the cost of his rent in Hell’s Kitchen and other expenses—including complicated medical bills—have left him living paycheck to paycheck. “I essentially live in a way that covers my needs, but there’s literally no extra for anything,” he said. As the holidays approach, he finds the weight of his financial obligations keeps him from participating in seasonal traditions.

“It would be nice to participate in some sort of nominal gift-giving, but it’s just not possible,” he explained. “Many of my friends are helping me financially.”

Ben’s experience is unfortunately not uncommon. The survey from the Institute for College Access & Success (TICAS) and Data for Progress found that over one-third of respondents noted their loans adversely affected their ability to cover healthcare costs for themselves or their dependents. Additionally, 52% of borrowers reported their loans negatively impacted their retirement savings plans, and 45% acknowledged a detrimental effect on their housing goals.

“The most concerning thing for me is the percentage of borrowers that report making tradeoffs between covering basic needs and making student loan payments,” said Michele Zampini, associate vice-president of federal policy and advocacy at TICAS.

These findings raise alarms about the adequacy of existing safeguards within the repayment system. The recent announcement from the Trump administration to eliminate the Biden-era student loan repayment program known as the Saving on a Valuable Education (Save) plan has stirred further concern. This income-driven repayment program aimed to significantly reduce undergraduate loans, enabling some borrowers to make $0 payments while offering early forgiveness options for low-balance accounts.

Administration officials argue the Save program is illegal and constitutes an overreach of federal authority. According to a recent statement from the Department of Education, all new enrollments in the Save plan will be halted, pending applications denied, and existing borrowers will be shifted to alternative repayment plans.

“All of those borrowers are going to see higher monthly payments than they otherwise would have,” noted Zampini, expressing profound concern about the lack of immediate options for those displaced by this decision.

Erin O, a 31-year-old working in the non-profit sector, found herself facing similar uncertainty. Currently enrolled in the Save plan, she anticipates her payments may double or even triple following the plan’s termination. She is also involved in the Public Service Loan Forgiveness program, which now faces limitations due to potential changes under the current administration.

“Nobody makes it easy for you to understand the information that you need to know,” Erin stressed.

As Erin prepares for the holiday season, the pressure of her remaining $34,680 in federal loan debt weighs heavily. Her loans have been in forbearance during ongoing litigation regarding the Save program, but she must soon resume payments. As she travels from Denver to Texas to be with family, they have mutually agreed this will be a frugal Christmas.

“In the last few years, especially with COVID, I have definitely downgraded my holiday spending to only immediate family and very close friends,” she said. “This year, the purse strings are getting even tighter. Everyone in my immediate family has agreed this is not really a gift-giving year.”