Key insights from a poll of 436 Americans with student loans*: 

• Almost one in three (31%) Americans with student loans have noticed an increase in their monthly payments in the last six months.
• The average monthly student loan payment currently stands at $284, with 34% paying $200 or more.
• Gen Z and Millennials with student loans report higher monthly payment burdens ($526 and $215 respectively).
• Over half (56%) of borrowers say student loan payments limit their ability to save or invest. This is especially higher for Gen X (59%) and Millennials (58%).
• Almost half (45%) have delayed major financial decisions, such as buying a home or retiring, due to loan obligations.
• Nearly three in five (59%) of borrowers say they experience stress or anxiety related to their loans, and 57% would not have taken on as much debt in hindsight.
• Half (54%) of borrowers said they prioritize other forms of debt (e.g., credit cards and car loans) over student loan repayment.
• One in four (23%) borrowers have consulted a financial advisor to help them make a financial plan.
• Over two in five (42%) of borrowers would also choose a different major or school if they could do it over, led by Millennials (48%) and Gen X (45%).

Student loan payments are high and rising

About 42.7 million Americans grappled with federal student loan debt in 2024, with an average balance of $38,000.¹ And the collective balance exceeds $1.7 trillion.² The accumulated outstanding debt of borrowers (both college and grad school) has increased more than sixfold since 2003, reflecting an annual growth rate of nearly 9%.³ Figure 1 highlights that nearly one in six borrowers (15%) are paying $500 or more, indicating a substantial financial burden for a significant percentage of borrowers.

Figure 1: Over one in three borrowers shell $200 or more in monthly student loan repayments 

Question: What was your average monthly student loan payment in the past 6 months (i.e., since December 2024)? Source: Empower “Student Loan Payments Pulse" report, June 2025.

The ending of pandemic-era amnesty for defaulted borrowers and the elimination of the most affordable repayment plans are impacting those with perfect repayment records as well as those delinquent in their payments who got amnesty during the pandemic but were required to start repaying their loans in May 2025.⁴

This likely contributes to just 42% of borrowers feeling confident in their ability to pay off student loans (figure 2). A significant 35% of borrowers don’t feel confident in their ability to pay off student loans. 46% of Gen X, 38% of Millennials and 22% of Gen Z don’t express confidence in repaying their student loans. 

Figure 2: Over one in three borrowers don’t feel confident in their ability to pay off student loans 

Question: To what extent do you agree or disagree with the following statement about the financial impact of student loans? – I feel confident in my ability to pay off my student loans. Source: Empower “Student Loan Payments Pulse" report, June 2025.

Student loan effect on savings and retirement

Only about one in five borrowers (18%) say student loan payments do not limit their ability to save or invest, highlighting the long-term consequences of student loans on wealth-building (figure 3).

This is at a time when college tuition costs have increased, with tuition and fees, including room and board, at four-year institutions growing from about $12,000 a year in 1981-82 to nearly $25,000 a year (at a compounded annual growth rate of 3.2%) at in-state public schools for the 2024-25 academic year.⁵ This far exceeds growth in both overall inflation and per capita income.⁶

Figure 3: Over half of borrowers report student loan payments limit ability to save or invest

Question: To what extent do you agree or disagree with the following statement about the financial impact of student loans? – My student loan payments limit my ability to save or invest. Source: Empower “Student Loan Payments Pulse" report, June 2025.

Similarly, 50% of borrowers say they contribute(d) less to personal or retirement savings accounts because of student loan payments (figure 4). This trend is consistent across all the generations – Millennials (52%), Gen Z (50%), Gen X (50%), and Boomers (45%).

Figure 4: Half of borrowers say they contribute(d) less to savings or retirement because of student loan payments 

Question: To what extent do you agree or disagree with the following statement about the financial impact of student loans? – I contribute(d) less to savings or retirement because of my student loan payments. Source: Empower “Student Loan Payments Pulse" report, June 2025. 

Trade-offs: Debt prioritization and cutbacks

Though student loans are the second-largest type of consumer-generated debt behind mortgages,⁷ the poll reveals over half of borrowers (54%) prioritize(d) other debts (e.g., credit cards and car loans) over student loan repayment, peaking at 66% among Millennials (figure 5). Only one in five borrowers (20%) indicate not doing so.

Figure 5: Over half of borrowers prioritize(d) other debts over student loan repayment

Question: To what extent do you agree or disagree with the following statement about the financial impact of student loans? – I prioritize(d) other debt (e.g., credit cards, car loans, etc.) over student loan repayment. Source: Empower “Student Loan Payments Pulse" report, June 2025.

Close to half of Millennial borrowers (46%) have had to cut back on discretionary/essential expenses to afford student loan payments (40% overall) (figure 6). Only one in four (25%) borrowers say they didn’t have to cut back on discretionary/essential expenses to afford student loan payments. 

Figure 6: Two in five borrowers had to cut back on discretionary/essential expenses to afford student loan payments 

Question: To what extent do you agree or disagree with the following statement about the financial impact of student loans? – I've had to cut back on discretionary/essential expenses to afford student loan payments. Source: Empower “Student Loan Payments Pulse" report, June 2025.

Student loans delay major financial decisions

Around half of Millennial (53%) and Gen X (47%) borrowers have delayed major financial decisions (e.g., buying a home or car) due to student loans (45% overall) (figure 7).  

Figure 7: About one in two borrowers have delayed major financial decisions due to student loans 

Question: To what extent do you agree or disagree with the following statement about the financial impact of student loans? – I have delayed major financial decisions (e.g., home, car, retirement, etc.) due to student loans. Source: Empower “Student Loan Payments Pulse" report, June 2025.

Remorse runs high. Nearly six in ten borrowers (57%) say in hindsight, they wouldn’t have taken on as much student debt (figure 8). Boomers leads this regret at 66%, followed by Gen X at 65% and Millennials at 55%. Some 42% of borrowers would also choose a different major or school if they could do it over, led by Millennials (48%) and Gen X (45%).

Figure 8: Over half of student loan borrowers express remorse 

Question: To what extent do you agree or disagree with the following statement about the financial impact of student loans? – In hindsight, I wouldn’t have taken on as much student debt. Source: Empower “Student Loan Payments Pulse" report, June 2025.

Almost six in ten (59%) of borrowers experience stress or anxiety related to student debt (figure 9)—and over half of college undergraduates (51%) finish college with student loan debt.⁸ Millennials (62%) and Gen Z (61%) are the most likely to report stress and anxiety related to student loans.

Figure 9: Just under three in five borrowers experience stress or anxiety related to student debt 

Question: To what extent do you agree or disagree with the following statement about the financial impact of student loans? – I experience stress or anxiety related to my student debt. Source: Empower “Student Loan Payments Pulse" report, June 2025.

Opportunity for guidance and planning

Student loan debt has reached a critical point, with about 5.3 million borrowers currently in default, which represents 12% of all Americans who hold student loans.⁹ The default numbers that affect more than one in ten borrowers of student loans highlight a growing need for a plan of action. Almost one in four (23%) borrowers have consulted a financial advisor to help them make a financial plan (figure 10). Boomers (65%) and Gen X (56%) are the least likely to have sought advice compared to Millennials (52%) and Gen Z (52%). 

Figure 10: Less than one in four borrowers have consulted a financial advisor to help me make a financial plan

Question: To what extent do you agree or disagree with the following statement about the financial impact of student loans? – I have consulted a financial advisor to help me make a financial plan. Source: Empower “Student Loan Payments Pulse" report, June 2025.

Methodology

Empower’s “Student Loan Payments Pulse” report is based on online poll responses from 436 Americans with student loans, aged 18+. The poll was fielded by a third-party panel provider from June 9-11, 2025.