Student loans. Just the mention of them used to make my chest tighten. I remember staring at my loan statement one day, calculating my monthly payment, and thinking, How in the world am I going to pull this off? I wasn’t earning anywhere near what I thought I would after graduation. Add in rent, car payments, groceries, and a few surprise expenses, and I felt completely underwater.
If you’re in the same boat, trust me, I get it. That weight? That constant worry about making ends meet? It’s tough. But here’s the thing I’ve learned—student loans are manageable once you have a clear plan. You may not be able to pay them off tomorrow, but you can start taking actionable steps to regain control. Let's take it on together.
Step 1: Face Your Loans, Even if It’s Scary
I’ll admit it. For a while, I avoided even looking at my student loan balance. The emails went unopened, the statements piled up. It felt like facing them would make everything worse. But actually? It was the opposite. Once I sat down and looked at the numbers, I realized I wasn’t powerless. I had options.
Understand What You Owe
The first step is knowing exactly what you’re dealing with. Are your loans federal, private, or a mix? Here’s the difference:
- Federal Loans: Backed by the government, these offer more flexible repayment options like income-driven repayment plans or forgiveness programs (which we’ll get into later).
- Private Loans: These come from banks or credit unions, and they don’t have as many flexible benefits. Still, you might be able to refinance or negotiate terms.
Money Move! Not sure which loans you have? Head to Studentaid.gov for federal loan details. Private loans? Pull your free credit report and check.
The more you understand your loans, the easier it is to tackle them. Knowledge really is power here.
Step 2: Call Your Loan Servicer (I Know, It’s Awkward)
Calling your loan servicer can feel intimidating. I totally get it—I put off making that call for weeks. But when I finally picked up the phone and explained my situation, they were surprisingly helpful. They’ve seen it all before, so don’t feel embarrassed to admit you’re struggling.
What to Ask
Here’s what I asked when I called my servicer (and you should too):
- Can I get a lower payment? If you have federal loans, ask about income-driven repayment plans.
- What about deferment or forbearance? These allow you to pause payments temporarily if you’re going through a rough patch.
- Are there any repayment programs I qualify for? Some jobs or personal situations (like teaching or public service) come with forgiveness perks I hadn’t even considered until I asked.
Money Move! Write down your questions before you call, and take notes during the conversation. It helps you stay calm and remember all the info later.
Ignoring your servicer only makes things worse. Defaulting can lead to wage garnishment, tax refund seizures, or a massive hit to your credit score. Reaching out early gives you a better shot at staying in control.
Step 3: Look into Income-Driven Repayment Plans
If you’ve got federal loans, income-driven repayment plans (IDRs) are a lifesaver. When my monthly payment felt impossible to handle, switching to an IDR plan made it manageable. With these plans, your loan payment adjusts based on what you earn, not just what you owe.
Types of Income-Driven Repayment Plans
- Income-Based Repayment (IBR): Your monthly payment will be 10-15% of your discretionary income.
- Pay As You Earn (PAYE) or Revised PAYE (REPAYE): Payments are capped at 10% of your discretionary income.
- Income-Contingent Repayment: Payments are the lesser of 20% of discretionary income or what you'd pay on a fixed 12-year plan.
For me, switching to an IDR meant my payment went from $400 to under $150. It was manageable, at last.
Is It Perfect? Nope.
While IDR plans can help, they often stretch your loan term. That means more interest over time. But in the short term, they can give you the breathing room you need to survive.
Money Move! Plug your numbers into the loan simulator tool on Studentaid.gov to see how much you’d pay under each plan. It’s easy, and the results are eye-opening.
Step 4: Understand Deferment and Forbearance
There were a couple of times when even my reduced payments felt like too much. When that happened, deferment and forbearance were my go-tos for temporary relief.
Deferment vs. Forbearance
- Deferment: If you qualify (due to financial hardship, unemployment, or returning to school), you can pause your payments. And if your loans are subsidized, the government covers the interest while you’re not paying. Win!
- Forbearance: Anyone can request forbearance. It pauses payments, but interest still builds up.
It’s not a long-term fix, but it can keep you afloat when you need it most.
Money Move! Call your servicer and ask about deferment or forbearance criteria. I had to submit paperwork, but it wasn’t too complicated.
Step 5: Think About Refinancing
I refinanced one of my private loans about two years after graduating. It cut my interest rate by 2%, which saved me hundreds over the life of the loan. But refinancing isn’t for everyone.
Should You Refinance?
Refinancing works best if:
- You have private loans, especially those with high interest rates.
- Your credit score has improved since college (which means you could qualify for a lower rate).
- You don’t need federal repayment benefits like forbearance or income-driven plans.
Be Careful with Federal Loans
Here’s the catch. If you refinance federal loans, you lose access to programs like IDRs, deferment, or forgiveness. Consider your options carefully before taking the plunge.
Money Move! Shop around for refinance rates through banks or online platforms. Many offer free pre-qualification checks to show potential savings.
Step 6: Explore Forgiveness Options
Back when I was a new graduate, “loan forgiveness” felt like a far-off fantasy. But here’s the thing—if you work in public service, teaching, or certain specialized fields, it might not be.
Popular Forgiveness Programs
- Public Service Loan Forgiveness (PSLF): Work for a nonprofit or government job? After 10 years of qualifying payments, the remaining balance of your loans could be forgiven.
- Teacher Loan Forgiveness: Teachers in low-income schools can have up to $17,500 forgiven after five years of service.
- Other Options: Nurses, doctors, and even volunteers in the Peace Corps or AmeriCorps might qualify for niche forgiveness programs.
Money Move! Check your eligibility for these programs and start tracking your qualifying payments right away.
Step 7: Celebrate Progress, Not Perfection
One thing I’ve learned on this student loan journey? You have to celebrate the small victories. Paid off one of your loans? Did you make six on-time payments in a row? High-five yourself for those wins. They matter.
Take Small Steps Daily
Even if you can only put $20 toward your loans each month beyond your required payment, it adds up over time. Find ways to trim expenses without taking the joy out of life. For me, that looked like meal prepping and cutting back on takeout—not sacrificing my weekend coffee runs.
Money Move! Set up automatic payments for your loans. Many servicers offer a small interest rate discount when you go auto-pay. It’s a win for your wallet and your peace of mind.
Step 8: Seek Support and Stay Positive
Debt can be isolating, but you don’t have to go through it alone. When I opened up to people about my struggles, I found support from friends, family, and even online communities of folks dealing with the same thing. Having someone to vent to made everything feel a bit less scary.
Stay Educated and Flexible
Student loan rules change all the time. (Hey, anyone else waiting with baited breath for news on federal forgiveness plans?) Staying informed helped me adapt and leverage new options as they became available.
Money Move! Subscribe to email updates from your servicer or financial blogs for heads-up on policy changes. It’s free info that could save you money.
Crush Your Debt and Build the Life You Deserve
If you’re overwhelmed right now, take a deep breath. I’ve been there, and I can promise you one thing: progress may feel slow, but every little step forward counts. Whether you’re setting up that first phone call to your loan servicer or tweaking your repayment plan, you’re making progress. And that’s something to be proud of.
You are more than your student loans. With the right resources and a little patience, you can (and will) take control of your financial future. And when you do, trust me, it will feel amazing.
