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Content
Product ResearchMacroeconomicConsumer Survey

The Consumer Pulse: U.S. Student Loan Payment Resumption

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Tejas DessaiDirector of Thematic Research
Jun 22, 2023·1 min read

Key Takeaways

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Footnotes

1. Education Data Initiative. (2023, May 22). Average Student Loan Debt.

In June 2023, Global X Research surveyed 1,094 individuals in the United States regarding the impending student loan payment resumption. Topics ranged from knowledge of loan payment resumption and general U.S. student loan statistics to possible repercussions for the general economy and specific sector spending.

The average U.S. student loan debt per borrower stands at $37,338, however, 57% of respondents believe it is lower.1

40% of respondents are impacted by the upcoming payment resumption, over a fourth of whom were unaware of it.

The payment pause allowed 27% of respondents to increase cash flow for immediate financial needs and 25% of respondents to reduce overall debt aside from student loans

18% allocated funds towards savings, 15% enhanced mental well-being, 12% increased discretionary spending, 9% improved credit score, 9% invested towards professional development, and 7% went on vacation(s).

Surveyed individuals ranked increased cash flow for immediate financial needs as most important, followed by reduced overall debt in areas aside from student loans.

Of the around 60% who have student loans, over three-fourths are moderately or very concerned about resumption.

Nearly 50% believe the resumption will affect monthly spending, for 20% it will dramatically reduce all spending.

33% of borrowers will reduce spending on dining out, the leading category within discretionary spending.

Followed by 29% on vacation/travel expenses and 24% on extracurricular activities/hobbies.

32% of borrowers will reduce spending on groceries, the leading category within mandatory spending.

Followed by 23% on utility usage and 18% on insurance/healthcare.

Nearly half of surveyed individuals do not think it is likely for the debt cancellation plan to pass.

70% of respondents believe the resumption will have an impact on the American economy, while 20% do not know.

According to survey respondents, retail (39%) will be the most impacted industry due to the resumption, followed by leisure and hospitality (34%), and real estate (28%).


Click here to download the Global X ETFs June 2023 Consumer Pulse Survey: U.S. Student Loan Payment Resumption.

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