Student Loans
Struggling with student loans? You’re not alone, and you can change your financial future. Discover practical strategies to manage your student debt, regain control, and start building a better tomorrow. You don’t have to face this journey alone—an experienced financial coach is here to guide you every step of the way.
Did you know?
A staggering 48.8 million Americans are burdened with student loan debt. This represents nearly one in five adults in the U.S., highlighting the widespread impact of higher education costs. Whether it’s delaying homeownership, starting a family, or saving for the future, student loans weigh heavily on millions of lives.
The Student Loan Debt Crisis
Americans collectively owe a jaw-dropping $1.74 trillion in student loans. This unprecedented level of debt affects individuals, families, and the entire economy. From delaying life milestones to creating financial stress, the impact is far-reaching. Tackling this challenge starts with informed decisions and a solid plan.
Struggling to keep up!
Approximately 16% of Americans with student loans face difficulties making their payments. For many, this leads to financial stress, damaged credit, and delayed goals. If you’re feeling overwhelmed, you’re not alone—and there are strategies to help you regain control and find relief.
The hidden cost of Student Loans
For 60% of borrowers, student loan debt takes a toll on mental health, causing stress, anxiety, and feelings of helplessness. Debt doesn’t just affect your wallet—it impacts your well-being. It’s time to break the cycle and find strategies to ease the burden.
Coaching and Tools
Emotional Relief and Future Planning
The stress of student loans can feel overwhelming, with 60% of borrowers reporting negative mental health effects. Coaching offers the support and accountability you need to reduce anxiety and regain control. Beyond managing debt, a coach helps you focus on the future—whether that’s saving for a home, building an emergency fund, or planning for retirement—so you can move forward with confidence and peace of mind.
Financial Strategy and Debt Reduction
Coaching provides a clear roadmap for tackling student loans, helping you prioritize payments, reduce debt faster, and save money on interest. By simplifying complex options like income-driven repayment, refinancing, and forgiveness programs, coaching ensures you make informed decisions. A coach also works with you to create a sustainable budget that balances loan payments with your lifestyle, breaking the paycheck-to-paycheck cycle.
Tools to Use On Student Loan Debt
Request a Temporary Payment Pause (Forbearance or Deferment)
- How it Helps: If you’re experiencing financial hardship, you can temporarily postpone payments through deferment or forbearance.
- Action Step: Contact your loan servicer and explain your situation. Federal loans often have built-in options for unemployment or economic hardship deferments.
- Pro Tip: Keep in mind that interest may continue accruing on most loans during forbearance, so use this option sparingly.
Use the Loan Simulator Tool from Federal Student Aid
- How it Helps: The Loan Simulator (available on studentaid.gov) helps you explore repayment plans, forgiveness options, and strategies to manage your debt.
- Action Step: Input your loan details and financial situation into the simulator to see if switching to an income-driven repayment (IDR) plan could lower your monthly payment.
- Pro Tip: IDR plans can make payments as low as $0 per month for those with very low incomes.
Negotiate a Lower Interest Rate
- How it Helps: Lower interest rates reduce the amount you pay over time and can make monthly payments more manageable.
- Action Step: If you have private loans, call your lender and ask if they offer rate reductions or refinancing. With strong credit, you might qualify for a better rate.
- Pro Tip: Shop around for student loan refinancing offers, but avoid refinancing federal loans unless you’re sure you won’t need access to benefits like forgiveness programs or deferments.