#21: Student Loan Payments Resume & Airbnb Revenue Declines By County

Includes limited offer for my short-term rental calculator!

June 28, 2023 • Estimated Reading Time: 8 minutes

Hey all,

Welcome to a new edition of Spark to FIRE newsletter!

In this edition, you’ll read about:

  • Student Loan Payments: Resuming in September 2023

  • AirBnB Revenue Decline: By county (AS MUCH AS 52.9%)

If you haven’t already, subscribe to my newsletter to get notified of new posts and consider upgrading to a paid membership for only $6 a month (or $5/month in an annual plan).

As always, feel free to DM me on Instagram (@MillennialMoneyVeteran) or Twitter (@MoneyVeteran) on suggestions for the newsletter!

Related posts on this topic

Here’s a link to my site where you can read my blog posts on all things about personal finance, real estate, and financial freedom like:

💸 Student Loan Payments Resuming

Student loan repayments were paused in response to the COVID-19 pandemic. The pause with ZERO INTEREST was put in place in March 2020 by President Trump. While the pause has been extended multiple times, interest will resume on September 1st with payments resuming in October. 

What’s scary is that student loan borrowers have more debt now than when they did when the pause started.

The Consumer Financial Protection Bureau found that the median scheduled payments on other debt obligations from car loans to other debts have increased by 24% for student loan borrowers. For the younger borrowers, it’s a 252% increase from $65 to $229.

Even worse is that more than 1 in 13 student loan borrowers are currently behind on other payment obligations. This figure is also higher than when the pause started in 2020. 

While Biden’s plan to forgive as much as $20,000 for people with federal student loans is being reviewed by the Supreme Court, the payment schedule is still finalized. The SCOTUS decision is expected to come out in July. Even if Biden’s plan is approved, more than 25 million Americans will still have some loan balance remaining, according to Department of Education data.

The student loan debt debate is polarizing.

One side thinks it’s unfair how expensive higher education is and how capitalism almost requires them to take on high amounts of debt and the other believes everyone should be responsible for the debt they signed for and everyone else shouldn’t be responsible for someone’s debt. 

I’m on the side that everyone should be responsible for their own debt. Why? Because student loan forgiveness benefits colleges and universities who charge absurd amounts. I paid off my student loans from undergrad within the first 6 months I graduated. Thankfully, I went to a public state university. The problem is the cost of higher education. 

And there are posts like these from the same person that boil my insides:

How is your rent below $1,300 a month in NYC while having space for a library? That rent price is ABSURDLY CHEAP. What’s crazy is that they have enough money to have a luxury (a library) while complaining about their student loan debt. I’m glad she got roasted on Twitter.

Upon further investigation, the OP went to Champlain University, which I’ve never heard of, and then got a Masters of Fine Arts from Columbia University, a private Ivy League school. 

For someone who pays less than $1,300 a month in rent with a library in NYC and attended one of the most prestigious universities in the country, OP’s debt becomes everyone’s problem now since she asked “how do you expect Americans to pay for this?”. OP sounds very entitled and tone-deaf.

This isn’t meant to be a rant. I do believe there is a serious problem with higher education and the rising student loan debt. This is why I wouldn’t advocate for my child(ren) to go to higher education if they don’t know what they want to do. 

But posts like these make me side more firmly with everyone being responsible for their own debt. If loan forgiveness applies to student loans, will it apply to mortgages or car loans later?

Vote in the poll below to share your thoughts:

Share the Spark to FIRE Newsletter with a friend! 

AirBnB Revenues Down Up To 52.9%!

According to data from AllTheRooms, there have been huge declines in revenue year-over-year. The revenue per active listing (RevPAL) from March to May 2022 vs March to May 2023 show major declines that you can see in the table below:

Of the 182 counties in America with the most short-term rental listings, revenues were down in 179 of them or 98% of those counties. The average decline was 29% per listing compared to the 3-month period from March to May 2023 compared to the previous year.

While I’ve seen posts from other hosts that their calendar was empty, I’ve been fortunate. I have a property in Sevier County, which experienced a 48.4% decline in revenue between those two periods. In May, my revenue for that one property was $6.4K. This month in June, my revenue is $9K! 

While short-term rentals are taking a hit, I believe it’s the poorly managed and underwhelming properties that will be hit hardest. The days of putting a listing together and getting it rented are long over. Now, investors need to be more strategic in their acquisition and management to be successful. 

Limited Offer To My Readers

That’s why I’m offering the next 5 individuals who schedule a consultation with me on short-term rental investing a free copy of my STR calculator which takes into account average nightly rates per month, occupancy rate per month, and all the anticipated expenses to project a property’s performance. 

Buying a property is already stressful as it is. Anticipating its performance is another level of stress. That’s why it’s important to accurately analyze a property before purchasing!

My HIGHLY Recommended Apps/Services

Most Requested Resources

  • Want to schedule a 1:1 call with me to work on a personalized strategy? Schedule here

  • Don’t know what to buy for your rental? Here’s my free Furnishing List 

  • Want to quickly analyze a potential STR? Use my Short Term Rental Calculator to determine cash flow within minutes!