Investopedia / Photo Illustration by Alice Morgan / Getty Images Student loan borrowers are dialing back their discretionary spending. KEY TAKEAWAYS The median student loan borrower has cut $1,590 out of their typical yearly spending since student loan repayments resumed in 2023. The majority of borrowers have been able to manage the hit to their budget. But more borrowers are behind on their payments than usual. Student loan borrowers are cutting back spending in order to restart loan payments, acc ...

Rob is a 28-year-old office worker with $25,000 in student loan debt at a 5% interest rate with 10 years left in the term. He hasn’t been able to save much money, and apart from an emergency fund, he has no retirement nest egg. But he just got a promotion that comes with a raise, and will now have $1,000 in disposable income each month. The new job also comes with access to a 401(k) employer match program. Now he’s asking himself, should he put that extra money toward building wealth or wiping out debt? ...