From a young age, we’re taught to work hard in school so that we can go to college and succeed in our professional lives. However, what we’re not often taught is just how expensive college can be. After graduation, many of us are stuck with an overwhelming amount of student loan debt.
Student loan debt can make it difficult for us to accomplish important milestones like buying a house or retiring. But, student loans don’t just get in the way of our financial wellbeing. They can also negatively affect our physical and emotional health.
In a recent Freedom Debt Relief survey, we asked over 1,500 Americans to tell us how student loans have affected their health and emotional well-being. Here’s what they said:
With the national student loan debt in the U.S. reaching $1.6 billion in 2019, it’s no wonder why student loan debt is a huge source of stress for college graduates. In fact, most college graduate agree that their student loans are more stressful than any other kind of debt they owe.
And when you’re up against so much student loan debt, it’s easy to feel defeated. 31% of graduates surveyed believe that they won’t pay back their student loans in their lifetime. This could be why so many of the people we surveyed stated that their student loan debt is affecting aspects of their personal lives—including their mental and physical health, personal relationships, and even their ability to sleep at night.
Although the responsibility of repaying your student loans may be overwhelming, it doesn’t have to take over your health and well-being. Fortunately, there are ways you can reduce the stress that often comes with student loans and enjoy a higher quality of life.
How to Deal with Student Loan Stress
Here are some tips to help you alleviate student loan stress:
Understand Your Student Loans
Rather than just making your monthly minimum payments and going on with your life, take the time to thoroughly understand your student loans. Find all of your loans, get to know your payment options, and become familiar with the details of each loan. If you have any questions, reach out to your lender or a financial professional. By understanding how much you owe, you can put your student loan debt in perspective and figure out a plan to pay it off faster.
Sign Up for Automatic Payments
The easiest way to ensure you never miss a student loan payment is to sign up for automatic payments. Automatic payments can help you stay on top of your student loans while saving on late fees. They could also give you the chance to lock in a discount from your lender, as some lenders offer discounts for those who enroll in automatic payments.
Finally, automatic payments could help reduce your stress since you won’t ever have to worry about whether or not you made your payments on time.
Seek Employer Assistance
Since many of their employees are struggling with student loans, some businesses offer repayment assistance. Your employer may match a certain amount of money in student loan payments if you’re a full-time employee. It’s a good idea to consult your manager or human resources department to find out if this is an option.
If you are able to secure repayment assistance from your employer, you’ll feel much less overwhelmed because you’ll have someone to help you pay off your debt. The stress of having to repay everything on your own will likely go away.
Consider Student Loan Refinancing
When you refinance your student loans, a lender takes your loan or loans and combines them into one loan with a new rate and repayment schedule. By refinancing your student loans, you may be able to land a lower monthly payment, which will free up cash for other expenses.
When you have more money to put towards your living expenses, retirement, vacations, and other things that are important to you, you’ll feel less stressed about your student loans. Your monthly paychecks will be able to go towards other things you care about.
Tackle Your Other Debt
If you have other debt like a car loan or credit card debt, focus on paying it off. Once your other debt is paid off, you’ll free up money and can put more towards your student loans. Tackling other debt may require that you cut your expenses and/or take on a side job.
While tackling other debt may seem stressful at first, it will actually reduce your stress in the long run because you’ll be able to pay off your student loans faster.
Although student loans can negatively affect our health, following these tips can help ease some of the financial burden they’ve left us. With hard work, optimism, and persistence, you can achieve your dream of becoming student loan debt free.