Managing Student Loan Debt: Before, During, & After Borrowing

Student loans can be part of an education plan — but they are also a long-term commitment. This page helps you understand federal and private student loans, plan ahead, and make repayment decisions that fit your future life.

This page is for you if you’re:

Considering borrowing student loans (now or in a future term)
Already borrowed and want to feel more organized and in control
Preparing for repayment after graduation (even if repayment feels far away)
Unsure whether your loans are federal, private, or a mix of both

Good to know: This page does not assume federal-only or private-only. Many students have both.

How to use this page

Start with Section 1 to connect borrowing to your future life and career.
Review Section 2 to understand federal vs. private loans and how students access them.
Then choose your pathway:
- Pathway A: You have already borrowed
- Pathway B: You have not borrowed yet (or want to borrow thoughtfully)
Return to the repayment sections to compare options and plan for real life after graduation.

If you feel stuck or overwhelmed, you don’t have to figure this out alone: Meet with a CAFE Peer Mentor for support.

Click on each section below to explore the topic, access helpful resources, and consider optional activities.

1) Borrowing as a Long-Term Commitment (Life Design + ROI)

Borrowing is not just a way to cover a bill — it’s a decision that can affect your flexibility after graduation. This section helps you connect student loans to your goals, future income, and lifestyle so you can make choices that feel informed (not rushed or pressured).

A) Education as an Investment (ROI framing)

Student loans are debt — but education can also be an investment in skills, credentials, and earning potential.
ROI isn’t guaranteed. Outcomes vary by major, industry, location, and career pathway.
Borrowing becomes more manageable when you understand how total cost relates to future income and repayment.

A helpful mindset: focus on building a plan that balances access, opportunity, and long-term sustainability.

B) Borrowing decisions should fit your future life

A student loan payment competes with other real-life expenses after graduation. Even a “reasonable” payment can feel difficult if rent, transportation, insurance, or family responsibilities are also high.

What is a realistic starting salary for your career pathway?
How might pay increase over time (and how quickly)?
What are 3 big expenses you expect right after graduation (rent, transportation, food, insurance, etc.)?
Where would a loan payment fit into your budget — and what tradeoffs might it create?

C) Borrowing is cumulative (not just one term)

Many students focus on what they need “right now,” but total borrowing often grows term by term. Planning ahead can help you avoid surprise debt at graduation.

How many terms do you have left until graduation?
If you borrowed the same amount each term, what could your total be by the end?
What is one step you could take now to reduce future borrowing (scholarships, work hours, cost adjustments, etc.)?

Helpful Resources

Education as an Investment: Education Data Initiative information on ROI, Maximizing Earnings Potential with a College Education (Investopedia), Bankrate's How to Calculate ROI
Career & salary research: O*NET, BLS Occupational Outlook Handbook, Handshake, Glassdoor
Budget support: Create a Budget (Non-OSU Expenses) + Budget Optimization resources
Planning idea: Paying for College Planning Resources (see CAFE's Resource Section); estimate your post-grad “must-pay” expenses before deciding how much to borrow.

Optional Activities

Future income snapshot: Identify a likely first job, starting salary estimate, and monthly take-home pay estimate.
Real-life fit check: List 3 expected post-grad expenses and write 3–4 sentences about how a loan payment could affect choices.
Borrowing range estimate: Estimate how much you might borrow across the rest of your degree (even if it’s just a rough range).

2) Federal vs. Private Student Loans: How They Really Work (Eligibility + Access)

Federal and private student loans may both help cover education costs, but they function differently — especially during repayment. This section focuses on how each loan type is accessed, what eligibility commonly looks like, and which differences matter most later.

A) Federal student loans: how you’re considered

Federal loans are accessed through the FAFSA (Free Application for Federal Student Aid).
A student must generally be a U.S. citizen or an eligible non-citizen (example, permanent resident).
Eligibility can depend on factors like enrollment status, Satisfactory Academic Progress, and FAFSA requirements.
Federal loan amounts have annual limits and aggregate limits.
Some students are eligible but choose not to borrow — eligibility does not require borrowing.

B) Private student loans: how approval commonly works

Private loans are offered by banks, credit unions, and other private lenders.
Approval often involves a credit check and may consider income and debt-to-income factors.
Many students need a co-signer to qualify or to receive better rates.
Private loan terms and repayment options can vary widely by lender (there is no single “standard” set of rules).

C) Differences that matter most during repayment

Instead of focusing on “which is better,” focus on what changes your options if your income or circumstances change.

Who manages the loan during repayment (servicer vs. lender)
Flexibility if income changes
Hardship options and temporary relief
Consequences of missed payments
Ability to adjust strategy later (repayment plans, consolidation/refinancing)
Where to go for help or questions

Helpful Resources

Federal: studentaid.gov (loan basics, repayment info, loan simulator)
Private: OSU Financial Aid private loan guidance + reputable lender information, CAFE's Private Loan Module

Optional Activities

Quick check: In 1–2 sentences each, describe federal loans and private loans.
Access reflection: What factors influence which loan types you can access (FAFSA timing, credit history, co-signer availability, urgency)?
Confidence check: Which part feels most confusing right now — eligibility, terms, repayment, or staying organized?

Choose your pathway

Next, pick the section that best matches where you are right now. You can always return and explore both.

Pathway A: You have already borrowed student loans
Pathway B: You have not borrowed yet (or want to borrow thoughtfully)

3) Pathway A: If You Have Already Borrowed — Know What You Owe (Organize + Terms)

Goal: If you have already borrowed student loans, the most important first step is understanding what you owe, who manages your loans, and how your loans work. Many borrowers feel overwhelmed not because of the debt itself, but because the information is scattered, unclear, or unfamiliar. This section focuses on building awareness and organization — not judgment.

Loan Inventory | Many borrowers have more than one loan, sometimes across multiple servicers or lenders. Seeing everything in one place helps you make informed decisions and avoid missed payments or surprises. A complete loan inventory typically includes: loan type (name + private or federal), loan servicer or lender who manages the loan, the current balance, interest rate (fixed or varied, repayment status, etc.).

Understand Your Total Balance | Once you list each loan, step back and look at the total amount owed across all loans combined. This can feel uncomfortable — and that reaction is common — but this awareness is a key step toward control. Looking at your total balance helps you: understand what repayment might realistically look like after graduation, avoid underestimating the impact of multiple smaller loans, and connect borrowing decisions to future cash flow and lifestyle choices. If you see a large balance, it does not mean a bad decision - it means you have the information needed to plan responsibly.

Learn Key Terms that Affect Repayment | Student loans come with specific terms that determine what happens when life changes. You don’t need to memorize everything — but you should know what applies to your loans and where to find accurate information. Key terms to understand include: Grace period, deferment, forbearance, delinquency, default, consolidation (federal loans), and refinancing (private loans), etc. Find a long list here with definitions. Knowing these terms helps you recognize options early, avoid unnecessary penalties, and ask better questions when something changes.

Know Where to Find Reliable Information for Your Loans | Student loan information should always come from official or lender-specific sources — not social media, hearsay, or outdated advice. Start here:

- Federal loans: Log in to studentaid.gov to view balances, servicers, and repayment options
- Private loans: Visit your lender’s official website or borrower portal
- If you’re unsure who your lender is: Check past billing statements, emails, or your credit report

If information is hard to find, that’s a signal — not a failure. Difficulty accessing loan details is common and worth addressing early.

4) Pathway B: If You Have Not Borrowed Yet — Plan Before You Borrow (Income + Gaps)

Goal: If you have not borrowed student loans yet, planning ahead can help you make more intentional decisions and avoid unnecessary financial stress later. This section focuses on connecting today’s borrowing decisions to your future income, expenses, and repayment responsibilities — before any debt exists. Borrowing is not an all-or-nothing decision. Some students borrow a little, some borrow more, and some avoid borrowing entirely. The goal here is awareness and preparation, not pressure.

Future Income Awareness - Borrowing Should Fit Your Likely Career Path | Student loan repayment happens after graduation, so it’s important to ground borrowing decisions in a realistic understanding of future income. Start by thinking about:

- A likely first job or career path related to your major
- A reasonable starting salary (not a “best case” scenario)
- How income may increase over time (gradual vs. rapid growth)

Understanding your likely take-home pay helps you assess how much flexibility you may have for loan repayment alongside other priorities like housing, transportation, savings, and health care. Borrowing feels very different once you see how repayment fits into a real monthly budget.

Analyze Your Current Situation -| Identify Resources and Gaps | Before borrowing, it’s helpful to look closely at how you are currently paying for college and where gaps may exist. Consider: income from work, scholarships and grants, savings, family or other support, expected costs for tuition, fees, housing, food, transportation, and course materials. A funding gap is the difference between your available resources and your total costs. Borrowing is often used to fill that gap — but knowing the size of the gap helps you decide how much borrowing (if any) feels reasonable. It also helps you to avoid borrowing more than you need, explore alternative options before taking on debt, and to plan ahead if there are likely gaps in the future.

Preview Repayment Before Borrowing - What Would This Look Like Later | You don’t need to choose a loan or repayment plan today — but previewing repayment now can change how borrowing feels. Using reputable repayment calculators, you can estimate: a possible monthly payment, total costs over time, and how changes (borrowing less, shorter repayment term, paying extra later) affect outcomes. You can then ask yourself if this payment would feel manageable alongside other likely expenses.

Understand Federal and Private Pathways Before You Need Them | Students who have not borrowed yet often benefit from understanding how borrowing works before a decision is urgent. At a high level, federal loans require completing the FAFSA and have set limits and standardized rules; private loans depend on credit approval and often involve co-signers, with terms that vary by lender. Knowing how access works ahead of time can reduce last-minute stress, help you meet deadlines, clarify what options are realistically available to you.

5) Repayment Planning: What Life After Graduation Looks Like (Cash-Flow + Tradeoffs)

Goal | Student loan repayment is not just about choosing a plan — it’s about understanding how loan payments fit into real life after graduation. This section helps you connect repayment to your future income, expenses, and priorities so you can make informed decisions and adjust over time as your situation changes. You may have federal loans, private loans, or a combination of both. Repayment rules and flexibility differ by loan type, but all borrowers benefit from understanding how cash flow, risk, and tradeoffs work together.

Repayment Is a Cash-Flow Decision (Not Just a Math Problem) | A monthly student loan payment competes with other important expenses after graduation, such as: housing and utilities, transportation, food, insurance and health care, saving for emergencies or future goals. Even a manageable loan payment on paper can feel difficult if income is unstable or expenses are high. That’s why repayment planning starts with cash-flow awareness, not perfection. Helpful questions to consider:

- What is your estimated monthly take-home pay after graduation?
- Which expenses will be non-negotiable?
- How much flexibility will you realistically have each month?

Understanding Repayment Approaches (Federal and Private) | Repayment options vary depending on the type of loan you have. Federal student loans offer multiple repayment approaches, including options that adjust payments based on income and options that prioritize faster payoff or predictability. Private student loans typically have fewer options and are governed by the terms set by the lender - often times, students are paying towards their private loan right away. Rather than memorizing specific plans, focus on understanding:

- What your monthly payment range could look like.
- How long repayment may last.
- How interest affects the total cost over time.
- Which options offer flexibility if income changes

This understanding helps you recognize tradeoffs rather than searching for a “perfect” plan.

Tradeoffs to Think Through Before Choosing a Strategy | Every repayment approach involves tradeoffs. There is no universally “best” option — only options that align more closely with your situation and priorities. Common tradeoffs include:

- Lower monthly payment vs. higher total cost over time.
- Shorter repayment period vs. less monthly flexibility.
- Predictable payments vs. income-adjusted payments.
- Faster payoff vs. competing financial goals (rent, savings, retirement).

Being aware of these tradeoffs helps you make intentional choices — and adjust them later if needed.

Preview Repayment Using Trusted Tools | Using official or reputable repayment calculators can help you visualize how repayment might fit into your life. When previewing repayment, consider:

- Running scenarios with different income estimates.
- Comparing at least two repayment approaches.
- Noticing how small changes (borrowing less, paying extra later) affect long-term cost.

The goal of previewing repayment is not to lock in a plan today — it’s to build awareness so decisions feel less stressful later. For federal loans, you can review the student loan simulator to assess this information. For private loans, log into your portal, as they may have some tools to help you! Additionally, you can use calculators such as the one from calculator.net or from Bankrate.

Repayment Plans Can Change Over Time | Your first repayment choice is not permanent. Life after graduation often includes job changes, income shifts, relocation, unexpected expenses, etc. Many borrowers adjust their repayment strategy over time as their circumstances change. Knowing where to find information and help makes those transitions smoother and reduces the risk of missed payments or unnecessary stress.

6) Managing Risk Over Time: Flexibility, Hardship, & Staying Organized

Goal: Life rarely goes exactly as planned — especially after graduation. This section helps you understand how to respond when things change, where to find support, and how to avoid common and preventable student loan problems such as missed payments, unnecessary penalties, confusion, or scams. Managing risk does not mean predicting every outcome. It means knowing what to do next when something unexpected happens.

Life Changes | Many borrowers experience changes that affect their ability to make payments, such as a delayed job start or job loss, lower-than-expected income, health issues or family responsibilities, moving to a new city or state, returning to school or changing enrollment status, etc. These situations are common — and they are exactly why repayment flexibility and early action matter. Key takeaway: Ignoring a problem rarely makes it smaller. Addressing it early usually gives you more options.

Know Your Options During Financial Hardship | If you’re struggling to make payments, there may be options depending on whether your loans are federal or private. Common tools you may hear about include: Income-based or income-driven repayment (federal loans) — payments adjust based on income, deferment or forbearance — temporary pauses or reductions (interest rules vary), short-term hardship options offered by some private lenders, etc. These tools are not “failures” — they are risk-management strategies. The key is understanding which options apply to your loans, how interest behaves during these periods, and when and how to request them.

Understand Consequences of Missed Payments | Missing payments without taking action can lead to escalating consequences. Key terms to recognize are:

- Delinquency: Payments are late, but the loan is not yet in default
- Default: Long-term nonpayment that can result in serious consequences, including damaged credit, collections, and loss of eligibility for certain options
  The most important step if you’re at risk of missing a payment is to contact your servicer or lender immediately. Early communication often prevents long-term damage.

Stay Organized to Reduce Stress and Mistakes | Organization is one of the most effective ways to reduce student loan risk. When organizing, indicate things like, who manages each loan, login information in one secure place, reading and saving important emails or notices, setting up automatic payments when possible, reviewing loan information at least once or twice a year, etc. Small organizational habits can prevent missed payments, confusion, and unnecessary stress.

Watch Out for Student Loan Scams | Periods of confusion or stress are when scams are most likely to appear. Be cautious of companies that promise “instant loan forgiveness” or “guaranteed results”, requests for upfront fees to access benefits you can apply for yourself, and/or messages pressuring you to act immediately or provide sensitive information. You should never have to pay a third party to access federal student loan benefits. If ever in doubt, verify information directly through official websites!

7) Reflection & Next Steps (CAFE Support)

Goal | This final section helps you pause, reflect, and identify what comes next. Managing student loans is not a one-time task — it’s an ongoing process that changes as your life, income, and goals change. You do not need to have everything figured out today. The most important outcome of this module is clarity about your next helpful step.

Pause and Reflect | Take a moment to reflect on what you noticed as you moved through this module. Consider what surprised you the most, which section felt most relevant to you, and/or did anything change as to how you think about borrowing, repayment, planning ahead?

Identify Your Next Helpful Step | Instead of trying to do everything at once, focus on one small, realistic action. You might consider: locating and organizing your loan information in one place, running a repayment preview, using a trusted calculator, reviewing your expected post graduation budget, learning more about a specific term or repayment option, scheduling time once a year to review your loans, etc. Be sure to revisit this information as life changes.

Need help applying this to your situation?

If you want help interpreting options, finding your loan information, or getting educated on repayment preparation, schedule a conversation with a CAFE Peer Mentor. You’re not expected to know everything — you’re expected to take the next helpful step.