A lot of factors contribute to student loan debt: Institution of choice, credit rating and external cost factors, to name a few. But a new study from finance website Student Loan Hero suggests one more: Being born on Christmas or New Year’s Day.
According to the study, researchers found that American holiday babies end up owing less on average in student loans than other borrowers.
The report’s findings show 15% less in student loans for babies born on Christmas Day, and 13% less for those born on New Year’s Day.
Those born a day earlier don’t have things quite so lucky.
The report also shows findings that babies born on Christmas Eve or New Year’s Eve actually average higher debt, not lower. Christmas Eve comes out at 4% more than average, and New Year’s Eve at 5% more.
That comes down to a 21% difference between Christmas Eve and Christmas Day, and 20% between New Year’s Eve and New Year’s Day.
The study points out that not all Americans celebrate Christmas, and not all who do so do in the same ways. It also cites a 2017 study from the National Bureau of Economic Research which showed higher academic success rates for children born just before the cutoff for a school year. Until recently, the cutoff date was centered around teh new year, meaning that children born late in the year would wind up being older than many of their peers in school.
As for the dip for those born on the holiday eves, the study doesn’t have as firm a solution. It guesses that families might overcompensate with gifts more for babies born on Christmas Day, for instance, than the day before, wanting to make the birthday still feel special outside of its proximity to a holiday.
The full report can be found online at https://studentloanhero.com/featured/christmas-new-year-babies-debt/ .