Student Loan Woes Highlight Need for Personalized Financial Planning

Nearly three-quarters—74%—of people with personal student loans report feeling somewhat or very worried about their ability to repay, according to a recent survey by the American Institute of CPAs. This widespread concern is not just about debt, but because of broader implications for long-term financial health and stability.

“Student loans are more than a monthly payment. They’re a long-term financial commitment,” said Pamela Ladd, AICPA’s senior manager of personal financial planning, in a statement. “These concerns aren’t just numbers. They reflect real stress that can derail financial stability.”

The financial consequences extend beyond individual borrowers. The survey showed that 22% of respondents carried personal or parent student loans. Among them, 53% said their ability to save, particularly for retirement or other long-term financial goals, was negatively affected. Additionally, 70% of parents whose children have student loans were worried about their children’s ability to manage repayment.

Dennis Liu, head of the MissionSquare Research Institute, reinforced this point in earlier comments.

“Balancing competing financial priorities while managing student debt can significantly hinder wealth accumulation,” he explained in a statement at the time. “Employees may be forced to delay contributing to retirement accounts, investing for future goals or saving for major purchases—creating lasting gaps in financial well-being, even after their loan obligations are fulfilled.”

Many borrowers are transitioning from a period of loan deferral to active repayment, according to the AICPA study. Among those with personal or parent loans, 55% are now required to begin payments after a deferral period. Similarly, 49% of parents report that their children’s loans have also come out of deferment. Overall, a sizable number of survey participants had student debt—37% of those aged 18 to 34, 27% of those aged 35 to 44, and 25% of those aged 45 to 54.

Practical Steps for Borrowers

As borrowers navigate complex personal finances, financial professionals offer trusted advice across tax, retirement, estate, risk management and investment planning. They are uniquely positioned to help individuals create sustainable strategies for paying off student loans while continuing to build long-term wealth.

For individuals managing student loans, the study recommended taking early and informed action. According to the AICPA, borrowers should first confirm that their loan servicer has accurate contact information, to avoid missed payments. Next, they should understand their loan terms, repayment start dates and available options if they experience financial hardship. Creating a comprehensive financial plan that includes student loan payments alongside other obligations is essential.

In addition, the study stated that, when possible, borrowers should make early or additional payments to reduce overall interest and pay off debt sooner. In cases of financial difficulty, it is vital to contact the loan provider immediately to avoid accrued interest or penalties. Federal loan programs may offer ways to reduce or restructure payments.

“Given the high cost of education, loans are sometimes necessary to bridge the gap,” said Laura Brown, a member of the AICPA’s credential committee, in a statement. “Implementing an aggressive repayment strategy can help ease the stress of a high-expense period of life.”

The survey was conducted online by the Harris Poll, on behalf of the AICPA, with 2,087 U.S. adults from August 21 through 25.