Cristian Barcenas is preparing to eliminate luxuries like Starbucks, food delivery, and date nights.
After graduating from the University of California, Fresno, in 2013, he carried a student-loan balance of roughly $65,000. Barcenas sought further loans for a master’s degree but paused his studies to care for his father during a cancer battle. His debt has since climbed to $127,000.
Working in sales in California, Barcenas previously paid $105 monthly through the Biden-era SAVE repayment plan. Following the Trump administration’s elimination of SAVE, Barcenas expects his monthly obligation to jump to $815 this November.
“When I saw how much the payment is expected to be, I freaked out for a whole week,” the 40-year-old remarked. “I, under no circumstances, want to default.”
Barcenas and his spouse reviewed their spending over the last three months, discovering it was “jaw-dropping” to find they had spent more than $600 on grocery deliveries and over $300 on Starbucks during that period.
To prioritize student-loan payments, the couple has shifted to in-person grocery shopping, stopped using Uber, and limited date nights to once per month.
Since July, over 7 million borrowers have been notified of their transition away from the SAVE plan, with many bracing for increased costs. Over 1,000 individuals have informed Themoneytimes over the past year that they are anxious about the impact on their budgets, with some weighing the need for secondary employment or digging into retirement funds.
The Trump administration maintains that these student-loan adjustments aim to streamline a complicated repayment framework, limit excessive borrowing, and encourage colleges to reduce tuition. Barcenas believes the shift will cause borrowers to “want to hold onto what they have even more.”
“There’s going to be a lot of fear around spending because they know that they have this obligation that they can’t really get out of, and that’s going to be prioritized over everything else,” he noted.
Postponing life goals due to student debt obligations
Rey Sosa is anticipating a massive spike in his monthly payments, jumping from $50 to over $700. The 32-year-old urban planner is managing a $101,000 debt, primarily from his master’s degree, and is currently restructuring his budget while in forbearance.
“I based my entire life around that payment coming back at some point,” Sosa explained. “The amount shocked me at first, and while I have a budget for it, it does take away from saving for home, saving for kids, family, because that is what we have to scale back right now.”
While the Department of Education suggests enrolling in the new Repayment Assistance Plan (RAP) as a more affordable income-driven option, a report by the Center for American Progress (CAP) suggests a different reality. The report indicates that moving from SAVE to RAP could cause student-loan bills increase by an average of $2,163 per year.
Sara Partridge, CAP’s associate director of higher education and a report coauthor, noted that these increases arrive amidst high inflation and stagnant wages, placing significant financial pressure on individuals.
Amy Webb, 60, is feeling the weight of this pressure. Having taken out $178,000 for her son’s education as a single parent, she is worried about the rising costs. She has already refinanced her home, is unable to buy a new car, and is even considering moving out of Virginia to a more affordable state.
“I don’t know how long I can do this,” Webb said. “I wish the government would help.”
Sosa is aiming for Public Service Loan Forgiveness, which clears debt for nonprofit and government employees after 10 years. However, with six years of payments remaining, he expects to delay major milestones like buying a home.
“I understand that we have to repay our loans,” Sosa said. “That’s not what I’m upset about. What I wish is that there was more consideration into the cost of living. The world just got more expensive after school.”