What can I do about looming student loans?

Dear Reader, 

Whatever you may be feeling right now—fear, anxiety, even regret—is completely valid. Student loan debt can feel overwhelming, especially as you approach a major life transition like graduating from your program. You’re not alone; many people in similar situations report feeling anxious, stuck, or uncertain about their future. While the numbers might feel daunting, there are ways to move forward that support both your financial health and your mental well-being. Student loans don’t have to define your future. With some information, thoughtful planning, and support, you can regain control. 

What should you know about your student loans? 

One of the most helpful things you can do right now is understand the type of loans you have—federal or private—because this will affect your options. 

Federal student loans, which are issued by the U.S. government, generally offer more flexible repayment options. For instance, you might qualify for income-driven repayment (IDR) plans that calculate your monthly payments based on your income and family size. If your income is low, your payments may be low, too. In some cases, any remaining balance on your loan can be forgiven after a certain number of years on an IDR plan. You might also be eligible for loan forgiveness programs if you plan to work in public service or education. Programs like Public Service Loan Forgiveness and Teacher Loan Forgiveness can significantly reduce or even eliminate your federal loan debt if you meet the requirements. 

On the other hand, private student loans are issued by banks or other private lenders and typically don’t offer the same benefits. Your repayment options may be more limited, and they usually depend on your credit score and the terms of your loan agreement. That said, if you have a strong credit history or a co-signer, you may have access to lower interest rates or larger loan amounts. 

Many people end up with a mix of federal and private loans. If that’s the case for you, you might find it helpful to prioritize paying off private loans while researching flexible repayment or forgiveness options for your federal loans. 

How can you manage financial stress in your day-to-day life? 

Right now, you might feel stuck or panicked because of your financial situation, but there are things you can do to ease some of that stress. You might consider the following suggestions: 

• Start with budgeting. It might sound simple, but creating a clear picture of your income and expenses may help you feel more in control. There’s no time like the present; you could start even while you’re in school or between jobs. When making your budget, it’s a good idea to include your minimum loan payments and factor in necessities like food, rent, and transportation. 
• Try to stay active in your professional life. Like physical activity, staying active in your career development can help you feel more empowered. Updating your resume, reaching out to contacts, and continuing to apply for jobs may make you feel more hopeful and in control of your future. 
• Maintain sustainable coping mechanisms. Even when things feel chaotic, maintaining a routine with habits to support your well-being can be useful. Eating meals at regular times, going for walks, and setting defined working hours for yourself might help ground you during moments of uncertainty. 
• Ask for help. You may find it useful to talk to a financial advisor, career counselor, or a trusted friend or mentor. Your academic institution might have resources to help people just like you manage debt and stress. Getting another perspective on your situation may uncover solutions you hadn’t considered. 

Are there other supports you could think about accessing during this time? 

It’s completely normal to feel anxious or low during financially difficult times. That said, if those feelings persist for more than a few weeks, or if they start to interfere with your ability to function day-to-day, it might be time to talk to a mental health professional. If you ever feel like you can’t cope, or that life isn’t worth living, consider seeking help immediately. There’s no shame in talking to someone about mental health; in fact, it’s one of the most responsible and compassionate things you can do for yourself. 

Even if your feelings aren’t extreme, you might still benefit from mental health support. Student loan debt can contribute to feelings of shame, isolation, or chronic stress, and mental health professionals are trained to help people navigate those challenges. If you have an upcoming visit with a health care provider, you might consider bringing up your financial stress. A provider may not be an expert on money but letting them know what you’re going through can help them understand your overall well-being and potentially help them refer you to someone who can help. 

Your student loans might take time to repay. That said, they don’t define your worth or the value of your education. Right now, try to take it one step at a time. It’s a great first step that you’re getting informed about your loans. Continue to explore your repayment and forgiveness options, keep up your daily routine, and talk to people who can support you. You’re not alone, and this won’t last forever. 

With care,