Texas Students Drowning in Debt, 2nd Only to California, but What Can They Do?

Student loan debt in Texas reaches staggering heights, impacting lives and limiting opportunities.

Student loan debt is shackling Texans with an average debt of $127.3 billion, placing them second only to California in the US. This debt crisis is hindering Texans' ability to achieve major life milestones, such as buying a home or starting a family.

MarketWatch Survey: Student Debt Sets Grads Back

• MarketWatch survey reveals 71% of recent grads with loans feel financially set back by an average of 10.2 years.
• 75% say debt impacts retirement savings, 60% say it impacts plans to have children, and 48% still receive financial support from parents.
• Many grads cut back on expenses, with 44% living at home and 18% hoping for government debt cancellation instead of making payments.

Manageable Options for Borrowers

• Income-based repayment plans and the Education Department's loan simulator help borrowers manage debt based on income and timeline.
• Side gigs provide extra income to tackle debt more aggressively and reduce interest payments.

The SAVE Plan Stalls

• As of Monday, federal judges halted the SAVE repayment plan's forgiveness and blocked reduced payments, impacting millions.
• Borrowers advised to continue scheduled payments and consider other enrollment benefits.
• Judges in Kansas and St. Louis blocked the Biden administration's SAVE Plan, preventing reduced payments and quicker debt forgiveness.