How To Lessen Your Anxiety Around Paying Your Student Loans

Posted on Posted in Mindset

You’ve been ignoring your student loans for a while, and the thought of making payments brings you stress.

You’ve created or retweeted memes about how all student loans should be forgiven. When you see an article about the crisis and the way it is affecting millennials, you make certain to share it with a comment signifying how much you hate Sallie Mae.

Let’s face it.

Student loans can bring on a ton of anxiety, especially when you feel as though you don’t make enough to pay them off or have other expenses that you believe are more important.

However, you don’t have to feel as though your student loans are a burden. It starts with a few mindset shifts that allow you to see they are worth paying off as soon as possible.

Here are 3 ways to reimagine your relationship with your student loans:

  1. Know that YOU are in control, not your loan servicer.

Creditors love to inform you of your payoff date – the month and year when your loan will be paid off as it relates to the interest rate and arranged monthly payments. Even though they are in control of the interest rate, you are in control of the amount you pay. The federal government offers 6 repayment plan options that have a payoff period ranging from 10 to 25 years. You don’t have to base your life around those repayment schedules.  By paying more than the minimum required on your loans, you determine your own release date. If the plan says 10, you have the power to say 5. If it says 15, you have the power to say 7. Even one extra payment can reduce the amount of time it takes to pay off the loan. You have to make up your mind that you are ready to be free and it starts with you not conforming to what you see on paper.

  1. Reimagine the payments you are making.

The word debt does not define you, and you do not have to be bound it. You don’t simply want to be debt free, you want freedom it provides. You want to be free to live your best life. Therefore, you are making freedom payments, not debt payments. Every single payment brings you one step closer to doing what you love and creating the legacy you desire to leave behind.

  1. Focus your energy on the smallest balance, not the total balance.

The average student loan balance is $37,172. Your total balance may be less, more or even around the same amount of the average. It is extremely important to know your total balance, but it should not be where your energy resides.  Your thoughts may be “How can I afford to pay this balance off?” when you begin to think of your modest salary and basic expenses. The key to reimagine your loans is to pay the most attention to your smallest balances. This strategy is called the debt snowball method. When you begin to make payments starting with the smallest balance, you will gain confidence and see paying off your loans more realistic.


Leave a Reply

Your email address will not be published. Required fields are marked *