When Student Loans Are Inevitable
Originally published on Substack
I ended last week’s blog post with the question:
“What hope or plan of action is there for the average student in America?”
Every high school graduate roughly has four paths to choose from:
Attend a traditional private or public four-year college
Attend a two-year community college
Go to a trade or vocational school
Or decide college isn’t the right move at all
Each of these paths comes with trade-offs. I won’t unpack all the pros and cons here because this piece isn’t about choosing a path.
It’s about what to do if you’ve already chosen loans.
For the average student who chooses a four-year college, loans are often unavoidable - whether it’s an in-state public, out-of-state public, or private university. So the decision isn’t loan or no loan. It’s how to take on debt in a way that doesn’t quietly run your life for the next 20 years.
If student loans are part of your story, how do you build a future that isn’t defined by them?
9 Simple Habits That Make Student Loans Less Heavy
None of these habits are dramatic. That’s the point.
Debt becomes crushing not because of one big mistake, but because of years of small, avoidable ones.
1. Borrow Less Than You’re Allowed
Just because you’re approved for a loan doesn’t mean you need all of it. Borrow what you actually need, not what’s offered.
Every extra dollar borrowed costs more than a dollar to repay.
2. Know your Interest Rates by Name
The interest rate determines how much your loan will cost you over time. It’s not just what you borrow, it’s what you pay on top of what you borrow.
If you don’t know your interest rate, you’re borrowing blind.
Two students can borrow the same $30,000, but if one has a 4% rate and the other has 8%, their repayment experiences will look very different. The higher rate means more interest accrues over time, larger total repayment, and often higher monthly payments, even though the original amount borrowed was identical.
3. Live Like a Student (Even When You Don’t Have To)
Yes, I know that sometimes you want to splurge, especially when those loan refund checks hit your bank account and feel like extra money.
But they’re not. That money is borrowed. With interest.
If it doesn’t directly help you graduate (Think: tuition, books, rent, essentials), think twice before spending it.
4. Treat Extra Income as Future Relief
Summer jobs, freelance work, tax refunds, graduation gifts… even small amounts matter.
Instead of treating extra income as more spending money, consider directing part of it toward interest payments, principal reduction, or building a small buffer to keep you from borrowing more later.
A few thousand dollars used intentionally today can save you years later. You’re not trying to eliminate the loan overnight, you’re trying to keep it from expanding
5. Avoid Lifestyle Inflation After Graduation
Your first paycheck will feel exciting. Don’t immediately upgrade everything in your life.
The fastest way to feel broke with a good job is to live like you’re already debt-free.
6. Pick a Repayment Plan on Purpose
Default repayment plans are exactly that—defaults. You have options.
Know your options and choose one that fits your income and goals, not just convenience.
7. Make At Least One Extra Payment a Year
Even one extra payment each year can shave years off repayment.
Consistency matters more than size.
8. Don’t Ignore Your Loans Out of Anxiety
Avoidance is expensive.
Missed payments damage credit, raise stress, and limit future options.
9. Plan for Life Beyond Loans - Start Investing Early
This one surprises people, especially when they’re already in debt. But investing early isn’t about large amounts. It’s about starting.
You’re not trying to get rich in college—or maybe you are 🤷🏾. You’re trying to build the habit and give time a head start.
Start with money you weren’t depending on: extra income from side gigs, refunds, gifts, unused items you’ve sold, or small automatic transfers you barely notice.
Your loan balance shouldn’t stop you from thinking about saving, investing, or building stability.
Debt may be part of your present. Investing is how you quietly work on your future at the same time.
A More Honest Version of “Hope”
Student loans don’t automatically ruin lives.
But they do demand intention.
The difference between loans that help and loans that hurt is rarely luck. It’s awareness, timing, and small decisions repeated over time.
I think hope isn’t about avoiding debt altogether.
It’s having a plan of action to deal with it.
With lots of love,
Your godmother Ada
