Navigating holiday expenses when you're paying off student loans

By Victoria Holliday | Published on October 21, 2025

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The holiday season can be a time of joy and celebration, but it can also bring financial stress, especially for those managing student loan debt. With Americans averaging $1,028 in holiday debt in 2023, it's crucial to find a balance between enjoying the festivities and maintaining financial health. This guide will help you navigate holiday spending while keeping your student loan obligations in check.

Understanding Your Financial Picture

Know Your Student Loan Debt

The first step in effective budgeting is to build a comprehensive financial picture. This means knowing exactly what you owe in terms of your student loans. With the student loan payment pause ending in 2023, borrowers are navigating a new landscape of balancing holiday expenses with resumed loan payments. So staying on top of your financial obligations is more important than ever.

Create a Realistic Budget

To avoid overspending, create and stick to a budget. There are numerous budgeting methods and approaches, the key is finding one that works for you. One popular approach is the 50-30-20 method:

• 50% of your income for necessities (food, rent, etc.)
• 30% for discretionary spending (wants)
• 20% for savings and debt repayment

When planning for holiday expenses, try to allocate only funds from the 30% "wants" portion of your budget.

Strategies for Holiday Spending

Plan ahead

The earlier you start planning for holiday expenses, the better. This allows you to spread costs over a longer period and avoid last-minute financial strain.

Prioritize experiences over material gifts

Consider gifting experiences rather than physical items. This can often be more meaningful and potentially less expensive.

Communicate with loved ones

Be open with friends and family about your financial situation. They may be more understanding than you expect and might even prefer to exchange more modest gifts or focus on spending quality time together instead of material items.

Resist credit card temptations

While it may be tempting to use credit cards for holiday purchases, this can lead to accumulating more debt. Stick to your budget and use cash or debit cards when possible.

Managing student loans during the holidays

Explore repayment options

If you're struggling to balance holiday expenses with loan payments, consider exploring different repayment plans. Income-driven repayment plans can adjust your monthly payments based on your income and family size.

Consider refinancing with Earnest

Refinancing your student loans can be a powerful tool for managing your debt. Here's how refinancing with Earnest can help:

• Potentially lower interest rates, saving you money over time
• Customized repayment terms to fit your financial goals
• Choice between fixed and variable rates
• No fees for origination, prepayment, or extra payments

Our flexible repayment options allow you to design a plan that works for your budget and lifestyle.

Managing holiday spending while dealing with student loan debt requires planning, discipline, and sometimes tough choices. However, with the right strategies and tools, you can enjoy the holiday season without derailing your financial goals. Remember, being proactive about your student loan management, whether through careful budgeting or exploring refinancing options with Earnest, can lead to significant long-term savings and peace of mind.

Take control of your finances this holiday season and set yourself up for a prosperous new year!

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About the Author

Victoria Holliday

Victoria is the Head of Content at Earnest. She brings extensive ed-tech expertise from six years at Chegg, where she developed educational resources reaching over 20 million students nationwide.

With a Master’s in Political Science and experience in public policy from several California campaigns, she’s passionate about creating accessible content that enhances student outcomes in the dynamic world of higher education.