Managing Student Loan Anxiety: Tips from One Student to Another

When I started college, I knew I’d be taking on student loans. However, I didn’t realize just how much it would weigh on my mind. As much as I try to focus on my classes, internship, and the overall plans for my future, the looming cloud of student debt has always been there. It’s hard to enjoy the moments of college when happiness is tied to a price tag. Over time, I’ve discovered some strategies, and small mindset shifts that have helped manage this anxiety.  

If you’re dealing with similar feelings, know you are not alone: according to WalletHub, 70% of students are stressed about student loans–. Loan anxiety is a shared experience for many students trying to navigate higher education. The feelings of long-term debt, worry of future job security, and fear of falling behind on payments are all common. Here are steps I’ve taken to better manage that anxiety:  

1) Understand the Source  

For me, student loan stress comes from different sources. First, there’s the long-term commitment, knowing I’ll be making payments for years, and potentially decades, after graduation. I worry about missing payments or how one mistake can ruin things such as my credit score. Another stress I deal with is finding a job, one that can pay me enough to pay off my loans. Whether these uncertainties come from family, friends, or external pressures, they all add fuel to my anxiety.  

Thankfully, there are resources out there to help ease some of the stress. Ascent has great tools available to borrowers, including AscentUP, an online platform with over 50 hours of on-demand content from industry experts that supports students with financial wellness and aims to help students graduate faster, get a job that matches their needs, and earn a higher starting salary. AscentUP* helps borrowers with their  academics, identifying career goals, and building confidence on how to save. It is self-paced and can be done anywhere from your mobile device.  

2) Educate Yourself on Loans & Finances 

One of the best ways I’ve found to manage student loan anxiety is to understand exactly what I owe and how the repayment process works. Each loan type is different; whether you have taken out federal or private loans, understanding the type, term, interest rate, and repayment options will help your loans feel more manageable.  

For Federal Student loans, you have options:  

• SAVE: Repayment Option: This is an income-driven repayment plan. FASFA describes it as a “plan [that] calculates your monthly payment amount based on your income and family size.” The benefits of the SAVE plan have interesting benefits. If you make your full monthly payment but fall short on paying for your monthly interest, the government will cover it! Borrowers who originally borrowed $12,000 or less receive forgiveness after 10 years.  

• Fixed Repayment: You choose a base of monthly payments based on your income. When it comes to Fixed Repayment, there are three types.  

1. Standard Repayment Plan: A fixed monthly payment for a 10-year period. If you don’t choose a repayment plan, your loan servicer will automatically enroll you in this option. – https://studentaid.gov/manage-loans/repayment/servicers  

2. Graduated Repayment Plan: Lower payments that increase every two years, designed to be able to financially support yourself and gradually afford higher payments. 

3. Extended Repayment Plan: Offers lower fixed payments over a longer term, which is helpful for students pursuing lower-paying careers. 

• TIP: What is Forbearance? Life can be unpredictable, especially when dealing with student loans. Forbearance is built for when life throws you curveballs and you need a temporary pause or reduction in payments.  

I know this seems like a lot. And each loan is different, but this is why it’s important to do research to understand your loan type. It may seem insignificant now, but loans add up and your research could potentially save hundreds, if not thousands, of dollars. The biggest takeaway is that, unlike Federal Student Loans, private student loans vary depending on the lender chosen. This is where private student loans, like Ascent, can help. Ascent offers multiple options for undergraduate loans  of students to help meet their unique financial needs. 

For Ascent Private Student there, you also have many options: 

• Cosigned Loans: Ideal for students with limited credit history or income. Allows students to have a credit worthy cosigner such as a parent or guardian.  

• Non-Cosigned Loans Based on Credit: Available for students who qualify independently based on their own credit score and income. This is a great opportunity for a student to take full responsibility for their loans 

• Non-Cosigned Outcomes Loan: This is specifically designed for juniors and seniors in college. It is an option for those that want to still support themselves ideally but might not have the facts to back it up. Instead of relying on credit scores, eligibly is determined by factors such as academic performance and projected future income.   

• Parent Loans: This option allows parents to take out a loan on behalf of their child to help educational costs. It offers competitive rates and flexible repayment options tailored to parents. 

While in school, even small payments can make a big difference. Whether it’s $1, $10, or $20 a month, every contribution helps reduce the overall interest on your loan over time. Ascent allows you to make these manageable payments while still in school, giving you a head start on repayment and potentially saving you hundreds or even thousands of dollars in the long run. It’s a simple way to take control of your financial future without feeling overwhelmed. I understand how easy it is to get overwhelmed when there is so much information coming to you all at once- that’s exactly why I’m here to help simplify things for you. 

3) Building Your Finances  

Starting your financial journey can be scary and intimidating. If you’re not sure where to start, Ascent is here to help. With any journey you take, you have to know where to go. Trust me, as a fellow student I have been exactly where you are now. While feelings like overwhelm never disappear, there are ways to control them. Here are my personally- tested and proven tips to help during college’s challenging moments.  

1. Start by creating a goal and tracking your progress. 

Figure out where you are financially and where you want to be to help set your goal. If you are looking for guidance with practical tips  the most effective is to ask students like yourself.  We have a huge list of tips for budgeting money as a college student. Once you decide what you are working towards, you can start tracking it. It will be hard to get into the habit, but forming healthy spending habits will save you in the long run.  

2. Check for student discounts and promo codes. 

Many popular companies, from streaming services like Hulu and Spotify to large tech companies such as Apple and Microsoft offer discounts for students.  Some perks include free trial or reduced subscriptions. Most times to take advantage of these deals all you have to do is present your Student ID or sign in using your school email address. Here is a list of my favorite deals. 

3. Apply for scholarships.  

Take advantage of scholarships to reduce your reliance on loans. Start by researching options offered by your school, local organizations, and online. There are countless databases that will offer you aid based on your background, major, or even personal interest.  Even small scholarships add up over time, and every dollar you earn through scholarships is one less dollar you must borrow.  

TIP: Never stop applying for scholarships!! Check out these easy no-essay scholarships from Ascent.  Ascent has awarded over $332,000 in scholarships to students.  

4) Seeking Support and Resources  

Student loans can feel overwhelming, and like any kind of stress, it’s necessary to keep it all bottled up. Make sure you’re sharing your concerns and frustrations with someone you trust– whether you speak to your parents, friends, or counselor, it’s a big help to get it off your chest. And if there is no one in person you can speak to there are forums with students and professionals on College Confidential about how to deal with this anxiety. 

Managing student loans and the anxiety that comes with loans as it is an ongoing process; but not an impossible one. With the right tools and mindset, you can focus on moving forward with your education and future! But most critically, remind yourself that you are not alone in this journey. College is about growth and discovery, so don’t let student loans take away from what you can accomplish. College is about growth and discovery so do not let the stress of loans take away from that experience. With the right plan and support you can embrace on all the different experiences and achievements college has to offer. 

About the author:  

Maelia (Mia) Madariaga-Ilagan is a fourth-year student at University of San Diego (USD) pursuing a degree in Marketing with a minor focus in Visual Arts. Coming from a large family where all siblings are encouraged to attend college, she understands firsthand the financial pressure that student loans can bring. However, she believes that the struggle of student loans should not shadow the opportunities college brings. During her time at USD, Mia has excelled both academically and within the campus community. She has served as the Public Relations Chair for USD Associated Students and become an active member of many student organizations. These experiences and many more have shaped her growth and given her opportunities to thrive.