Student loan borrowers are sacrificing their savings the most to pay off college debt, survey says

We often hear about younger generations (in particular, millennials and Generation Z), putting off significant financial milestones such as getting married, having children and buying a house because of their crushing student loan debt. But there's another financial decision that's being delayed by those dealing with student loans, and it's arguably easier to do than bear the cost of those milestones.

A recent Bankrate student loans survey revealed that adults are sacrificing their savings the most in order to pay off student loan debt. In fact, saving for emergencies and saving for retirement topped the list of financial decisions most often delayed as a result of student loans.

While it's certainly good news that student loan borrowers are making an effort to pay off their debt, it's important to not totally abandon your savings account, whether it's earmarked for a rainy day or your retirement years.

When it comes to building an emergency fund or investing for retirement, years of not saving any money can really set you back in the long run, plus you'll be missing out on the compound interest that would accrue over time.

The goal is to start small: even saving just $25 consistently each month in a high-yield savings account such as the *American Express® High Yield Savings Account will help your funds grow. Many experts recommend automating your savings so you can eliminate the decision to save altogether and won't even have to think twice about it. Through automation — whether it's a percentage from each paycheck or a recurring deposit from your checking to your savings — you become accustomed to living off of a budget that accounts for saving for your future.

When saving for your nonworking years, the earlier you start, the better, so don't wait until all your student loans are paid off. Even if retirement seems like a lifetime away, your biggest advantage is time. Start with depositing a percentage of your paycheck each pay period into an IRA or Roth IRA at a brokerage such as Charles Schwab or into a 401(k), if your employer offers one. While this can be a small percentage to start off with, we recommend contributing enough to meet any 401(k) employer match, if offered, as a company match is essentially free money into your nest egg.

The same Bankrate student loans survey found that, second to putting off saving, adults with student loan debt are also holding off on paying back other debt.

Before prioritizing student loan debt over other types of debt, borrowers should consider which type of debt is costing them more in the long term. For example, the interest rate you're paying on your outstanding credit card balance is likely much higher than the interest rate you're paying on your student loans. In this case, it makes more financial sense to accelerate the repayment of your credit card versus your student loans, as that will save you more money in interest charges.

If you have both student loan debt and credit card debt, get rid of your credit card debt first so you can then focus your attention entirely on paying down your student loans. A balance transfer credit card can come in handy in this scenario. The no-annual-fee Citi® Diamond Preferred® Card (see rates and fees) and Citi Simplicity® Card (see rates and fees) each offer one of the longest introductory periods for balance transfers: 0% intro APR for 21 months on balance transfers, plus 0% intro APR for 12 months on purchases from date of account opening (after, a 16.49% - 27.24% variable APR on the Citi Diamond Preferred and a 17.49% - 28.24% variable APR on the Citi Simplicity) Balances must be transferred within four months from account opening. There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5) for both cards.

With a balance transfer card, you can pay off credit card debt without accruing additional interest during the 0% APR intro period, which helps to really tackle your outstanding balance once and for all.

There's a way to lower the interest rate on your student loans, too. If you have private student loans right now, consider refinancing with a top lender to see if you can score a lower interest rate than the one you pay now. When you refinance, you also get the chance to shorten or extend your loan term. A lender like SoFi offers both variable and fixed rates (that automatically include a 0.25% autopay discount), the option to apply with a co-signer and financial advice from planners. Note, that it's usually not advised to refinance your federal student loans as you can lose the protections that federal student loans offer, including being eligible for the current student loan payment pause.

While it's important to keep up with your student loan payments, you shouldn't do it at the expense of forgoing other key financial moves like saving for the future and paying off high-interest debt. Plus, with the federal student loan payment and interest freeze extended through the end of the summer, you can use this time to redirect these next few monthly student debt payments toward saving for emergencies or retirement, or reducing other debt.

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Interest Rates: Eligibility and Important Details.  Fixed rates range from 2.98% APR to 15.99% APR with 0.25% autopay discount. Variable rates range from 4.39% APR to 15.99% APR with a 0.25% autopay discount. Unless required to be lower to comply with applicable law, Variable Interest rates are capped at 17.95%. SoFi rate ranges are current as of 5/21/2026 and are subject to change at any time. Your actual rate will be within the range of rates listed above and will depend on the term and type of repayment option you select, evaluation of your creditworthiness, income, presence of a co-signer (if applicable) and a variety of other factors. Lowest rates reserved for the most creditworthy borrowers. Check out our eligibility criteria at https://www.sofi.com/eligibility criteria/. For the SoFi variable-rate product, the variable interest rate for a given month is derived by adding a margin to the 30-day average SOFR index, published two business days preceding such calendar month, rounded up to the nearest one hundredth of one percent (0.01% or 0.0001). APRs for variable-rate loans may increase after origination if the SOFR index increases. Autopay Discount: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly payments as outlined in your loan agreement by an automatic monthly deduction from a savings or checking account. This benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. When the autopay interest rate deduction is added or removed, the next time the loan is re-amortized (quarterly for fixed rate loans; monthly for variable rate loans),the principal balance of your loan will be spread over the remaining loan term, and your monthly payment amount will change. This benefit is suspended during periods of deferment, grace period, or forbearance. Autopay is not required to receive a loan from SoFi. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

Information about the Citi Simplicity® Card has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.

* American Express National Bank is a Member FDIC