Addressing Student Loan Pressure
Although they were introduced as financial aid to improve higher education chances for people, student loans are proof that good intentions can have adverse consequences. For more than 44 million working Americans, student loans are an uncomfortable reality. As if starting adult life with debt isn’t enough, they also have to deal with spiraling interest rates and the threat of significant penalties if payments default.
In a recent report, more than 80% of surveyed Americans with student loans admitted to it being a source of stress for them. Some complained of experiencing headaches, anxiety, and a lack of sleep attributed to worrying about student loan payments. Such trends are troubling for a country where almost 60% of the college-going population has to rely on some form of aid to go to college.
However, barring any new legislations, student loans have to be paid off. Managing the stress associated with it is paramount if you’re going to be able to pay off your loans successfully. Here are a few hacks to help anyone with student debt rest easier:
Accept responsibility: One likely cause for feeling stressed over student loans is that you may feel a sense of regret about going to school or obtaining the credit in the first place. A person may feel, in hindsight, that they should never have gone to college. Such emotions are common and normal – as highlighted by several reports that show a higher loan default rate in students who didn’t finish tertiary education.
However, since it’s impossible to transfer your loan to someone else, your only option is to accept responsibility for it. Accepting responsibility is the first step in taking charge of the situation.
Assess your situation and keep track: A consistent narrative with most student loan debtors is that they don’t know how much they owe. This can cause further complications, especially considering you’ll have to pay interest on whatever is left after making payments.
Having a clear assessment of what’s on your student loan tab is imperative. You should consider refinancing your student loans, especially if you have multiple. That helps you keep track of payments better.
Make a plan: After assessing your situation, it’s time to make a plan. You should consult with your lender to create a payment plan that allows you to pay the loan seamlessly.
Apart from being a smart thing to do, creating plans can also be therapeutic. It makes you conscious of your ability to pay back your loans.
Interestingly, your potential earning increases with age and work experience. As time goes on, it becomes easier to pay off the loan.
Loans, regardless of their nature, can be mentally challenging to handle. That being said, student loans, much like any other loan, require you to be financially savvy to navigate around. For that, you’ll need to be methodical and clear-headed. Watching out for the effects of student loans on your mental health is an essential step in getting rid of the loans.