Paying Off Student Loans...🤮 A Foolproof Strategy

🫨 You’ll Pay Way More Than You Borrowed

Interest doesn’t chill while you ghost your payments. One missed payment turns into months of compounding interest. Before you know it, you’re paying $5,000 more than your original balance just in interest. Let’s not do that.

💸 Wage Garnishment = Surprise Paycheck Diet

If you default on federal loans, the government can (and likely will) garnish your wages, meaning money gets taken directly from your paycheck. No warning. No negotiation. That brunch budget? Gone.

🥺 Bye-bye, Sweet Sweet Tax Refund 

Looking forward to that annual tax refund? If you’re in default, the government can take it and keep doing so until your loans are back on track. That “free money” becomes loan money real fast.

🚫 Bankruptcy Won’t Save You

Unlike credit card debt or medical bills, federal student loans usually can’t be eliminated in bankruptcy. They’re sticky—like glitter…or that hoodie your friend borrowed and never gave back.

Just so you know: you can file for bankruptcy on private loans—but that’s a last-resort option we’re not aiming for. Be proactive now, so it never gets to that point.

💳 Say Goodbye to Good Credit

Late/missed payments tank your credit score, which makes it harder to:

• Qualify for better credit cards

• Get approved for car or home loans

• Rent an apartment without a cosigner

Got a cosigner on a credit card or loan? Your missed payments can hurt their credit, too.
Don’t sink the whole ship.

Even basic “adulting” things—like getting a phone plan—can become more complicated with bad credit.

⚖️ You vs. The Private Lender 

If you default on private loans, your lender can sue you. Yes, as in “your name on a court docket,” sue you. No thanks.

TL;DR: Ignoring Your Loans = Way More Expensive Long-Term

Don’t let your loans hang out in the background like a passive-aggressive group chat. Deal with them now, and Future You will thank you. Preferably when you’re not balding from stress or living off Ramen Noodles at 35. 😬

Before We Get Started… Know Your Opponent

Federal vs. Private Loans

🧑‍⚖️ Federal: Lower interest rates, flexible repayment plans, potential forgiveness
(like PSLF).

💼 Private: Higher interest rates, fewer safety nets, but sometimes refinanceable.

How to Find What Kind You Have

1. Login to StudentAid.gov (federal loans).

2. Check your Credit Report (private loans).

3. Stare directly into the financial void and accept reality.

Step 1: Face the Music 🎶

AKA Stop Hiding From Your Loan Statements

What’s the Damage?

• Check your total balance, interest rates, and minimum payments.

• Login to your loan servicer’s website (yes, now).

Why It Matters:

• You can’t fight an enemy you refuse to look at.
  (Some loans are sneakier than others…looking at you, variable interest rates 👀)

Step 2: Pick Your Plan of Attack 🥊 

AKA Choose a Payoff Strategy

Not all debt is created equal—here’s how to attack it:

Option 1: 🗻 The Avalanche Method

• ✅ How it works: Pay off the highest-interest loan first (saves you the most money long-term).

• ✅ Best for: People who want to minimize interest and don’t mind delayed gratification.

Option 2: ❄️ The Snowball Method

• ✅ How it works: Pay off the smallest balance first (quick wins keep you motivated).

• ✅ Best for: If you need psychological wins to stay on track.

Option 3: ♻️ Refinancing

• ✅ When it works: If you can qualify for a lower rate (good credit is highly recommended).

• ⚠️ Warning: Federal loan perks like IDR (Income-Driven Repayment) disappear if you refinance with a private lender.

Step 3: Cut the Fat ✂️

AKA Free Up More Cash to Throw at Debt

No need to live on Ramen (unless you want to–of course).
Small tweaks = big progress:

• Negotiate bills (phone, internet, insurance).

• Side hustle (even $200/month = $2,400/year extra) like selling stuff you don’t use on Facebook Marketplace

• Temporarily pause investing (unless you have a 401(k) match).

Pro Move: Automate extra payments so you don’t "accidentally" spend the money.

Step 4: Avoid These Classic Screwups 🚫

🚫 Paying only the minimum (you’ll be retired and still paying off student loans).
🚫 Ignoring forgiveness programs (PSLF, Teacher Loan Forgiveness—see if you qualify!)
🚫 Panicking if you fall behind (just reset and keep going—it’s a process 🚂)

Step 5: Celebrate the Wins 🍻

Because This Sucks and You Deserve It

• Set milestones ($5k paid off? Treat yourself.)

• Track progress (spreadsheets > depression)

• Remember: every dollar paid now = Future You will be thriving instead of crying.

Can’t Afford to Pay Off Loans?

Here are some ways to be proactive and avoid making your situation worse:

1. Check your credit:  Use Credit.com’s Free Credit Report Card to see what’s hurting your score

2. Check your federal loans: Use the National Student Loan Database to see loan details 

3. Switch or update your repayment plan (Federal Loans): Contact StudentAid.gov to discuss Income-Driven-Repayment plans 

4. Call your private lender (Private Loans): They might work with you to avoid defaulting

5. Consider Debt Consolidation: Combine loans into one monthly payment = one source of student loan stress

Apply for Student Loan Forgiveness: See if you qualify for any forgiveness programs
StudentAid.gov Loan Forgiveness information

💬 Closing Thoughts: You Got This 👊