Nearly 43 million Americans feel the burden of student loan debt. Not only can student loans weigh heavily on your bank account, but they can also be a source of stress, anxiety, and even shame.
According to a recent survey by debt settlement company Freedom Debt Relief, 67% of student loan borrowers reported feeling overwhelmed by their financial situation, while 38% said their education debt made it difficult for them to sleep at night. Almost half said it had contributed to their mental health issues.
While the psychological toll of student loans can be challenging, there are ways to manage it. From financial counselors to therapists, these experts share tips on how to manage stress and regain control of your financial and mental well-being.
Compare student loan refinance rates
How to cope with the psychological toll of student loans: 9 expert tips
If your student loans are a major source of stress, know that you're not alone.
“Many of our patients describe it as an inescapable weight, one that impacts their career choices, relationships, and overall sense of self-worth,” says Aja Chavez, licensed marriage and family therapist (LMFT) and executive director of Adolescent Services at Mission Prep Healthcare.
You don't have to carry this weight on your own. From seeking support to creating a realistic repayment plan, these nine strategies can lighten the load.
1. Acknowledge your feelings
Before jumping into a repayment plan, take time to acknowledge what you're going through, recommends Cory Reid-Vanas, an LMFT who works with teens and young adults.
“It's important to acknowledge the emotional effects of student debt,” says Reid-Vanas. “Name the feelings you're experiencing, whether it's shame, anxiety, or overwhelmed.”
This simple step of recognition, whether to yourself, a loved one, or a therapist, can help you process what you're going through and find relief.
2. Seek support
Money can be a taboo subject, which can make dealing with student debt feel isolating. Cathy Lu Espel, a certified financial planner (CFP) at First Horizon Advisors, says that speaking with others about what you're going through is critical.
“When financial stress and pressure start piling up, remember it's OK to ask for help,” says Espel. “Surrounding yourself with supportive friends and family can lighten the mental load.”
A therapist can also help you process your emotions, while a financial counselor can assist with creating a plan of action. Reid-Vanas says therapy provides an effective way to cope, and working with a financial consultant who can objectively evaluate your full situation can help lift the emotional burden.
If you're not interested or don't have the means for therapy, you could also join online communities where you can connect with others who share similar struggles.
3. Practice self-compassion
If you're beating yourself up about getting into debt, Nicole Issa, a clinical psychologist at PVD Psychological Associates in Rhode Island, recommends practicing self-compassion.
“A big theme we see is self-blame for getting into a situation where a significant amount of money is owed,” says Issa. “The figure doesn't define them or mean any kind of failure. It was a stepping stone to the next phase in their life.”
Accredited financial counselor Genevieve Anderson echoes this advice.
“Think about how you'd speak to a friend in the same situation,” says Anderson. “You wouldn't say, 'That was a dumb decision,' or 'You'll never get out of debt.' You'd offer encouragement, empathy, and perspective. Treat yourself with the same grace.”
4. Check in with your balance (but not too often)
If you're stressed about your student loans, it's tempting to bury your head in the sand and ignore your debt. Checking in with your balance, however, can help it become more real and manageable.
“A good way to help reduce financial stress is to know exactly what is in front of you,” says Espel. “Make a complete list of your loans, interest rates, and due dates to eliminate the fear of the unknown.”
On the other hand, be careful not to check your balance too frequently.
“We've had clients who are checking their balance obsessively, knowing it's not changing from day to day,” says Issa. She recommends creating a healthy balance between checking your balance and scheduling your monthly payment to be automatically deducted.
Automating your payments can give you peace of mind and ensure you don't miss payments, as long as it doesn't result in an overdraft on your bank account. It can also save you money, as many lenders reduce your interest rate by 0.25 percentage points for using autopay.
5. Come up with a repayment plan
Once you know how much you owe, it's time to develop a repayment plan.
“Having a plan is one of the simplest ways to ease the pressure,” says Espel. “When you know your next steps and have a schedule for paying off debt or saving, it gives you direction and makes everything easier to handle.”
If you have federal student loans, consider exploring the various repayment plans, including standard repayment, extended repayment, and income-driven repayment. Private student loans don't have as many repayment options, but some lenders will adjust your due dates or pause payments through forbearance if you're experiencing financial hardship.
“We know loans must be repaid, so building a repayment plan that is realistic and can be stuck to will relieve some level of stress,” says Issa.
6. Explore student loan forgiveness programs
You may be eligible for student loan forgiveness, depending on where you work. The Public Service Loan Forgiveness program will forgive your remaining federal student loan balance after 10 years of full-time service in a nonprofit, government organization, or other qualifying workplace. Teacher Loan Forgiveness will forgive up to $17,500 of your debt after you teach in a low-income school or educational service agency for five straight years.
Private student loans aren't eligible for these federal programs, but some companies offer student loan repayment assistance as a benefit for their employees. Some states also offer repayment assistance programs to qualifying professionals, typically those working in shortage or high-need areas.
7. Consider refinancing student loans
If your student loans are accruing a lot of interest, you may be able to lower your rate through refinancing. Refinancing involves trading in one or more of your current loans for a new loan with an ideally lower interest rate.
You can also choose new repayment terms to adjust your monthly payment. A longer term can make your monthly payments more affordable, though it will result in higher interest charges in the long run.
You'll have to meet a lender's requirements for credit and income to refinance. Some lenders allow you to apply with a cosigner if your credit score doesn't meet their criteria.
Note that refinancing wouldn't be the right option if you're relying on any federal programs. Refinancing federal student loans means forfeiting access to federal repayment plans and other protections.
8. Create a budget
Creating a budget will give you a clear view of your finances and help you make progress toward your repayment goals.
“The turning point usually comes when we're able to help people zoom out,” says certified public accountant (CPA) Paul Carlson.
You might use a budget-tracking app to record your income and expenses. A simple spreadsheet works, too. Take note of money coming in and going out, and consider whether there are areas where you can cut expenses or increase your earnings.
“When the rest of your finances are working, the debt becomes manageable,” says Carlson.
9. Take small steps, and celebrate your progress
The average borrower graduates from college owing $29,400, according to the College Board. Graduate students may owe significantly more. You're probably not going to pay off your debt overnight, so focus on the small steps you can take today.
“You don't have to tackle everything at once,” says Espel. “Taking small, intentional steps can really add up over time.”
If you try to do too much, you could end up overwhelmed and freeze from the stress. Anderson also recommends celebrating your wins along the way, no matter how small.
“Making a single payment, reducing your balance by even $20, or just checking in with your finances is worth celebrating,” she says. “These moments reinforce your progress and help shift your mindset from shame to empowerment.”
Take back control of your financial and mental health
Student loan stress can be a daily struggle for many borrowers, but you don't have to navigate these challenges alone. Seek support from others who can relate, whether that's fellow borrowers, loved ones, a therapist, a financial counselor, or all of the above.
Learn about your options for repayment and forgiveness, and develop a student loan plan that you can tackle one step at a time. Dealing with debt can be challenging, so be sure to celebrate your progress along the way.
If your student loan payments are unaffordable, here are five options for avoiding default.
