How to reclaim financial confidence even with student debt

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Student-loan debt in the U.S. has now crossed the $1.8 trillion mark. That magnitude means one thing: you’re not alone.

Debt doesn’t define you. But how you deal with it absolutely can.

Borrowers who take one small, proactive step—by checking their rate, exploring refinancing, or simply understanding their options—often describe the same feeling afterward. Relief. Clarity. Control. And while refinancing a federal loan means giving up certain federal benefits like income-driven repayment, forgiveness programs, or specific deferment options, in some situations it can still be worth it. Confidence with money doesn’t come from being debt-free overnight; it comes from understanding it and knowing what to do next.

Earnest shares three actions to take to help gain control of your student loans instead of feeling controlled by them.

1. Face your numbers—gently.

Avoiding your loan balance might feel like the easiest path, but unfortunately, the old cliché is true: Knowledge really is power. A clear view, even if it’s uncomfortable, is the first step to regaining control. Start simple: Check your total balance, interest rate, and monthly payment. Write them down. That act alone turns a vague worry into something you can work with.

Borrowers can be surprised by what they find. Some realize they’ve already made more progress than they thought. Others discover they’re on a longer repayment term than expected—or, frustratingly, that their interest rate is much higher than today’s market averages for borrowers with similar credit.

And remember: You’re one of over 43 million Americans with student-loan debt, so showing up and looking at your numbers puts you in good company.

2. Look for breathing room, not perfection.

The goal isn’t flawless finances; it’s forward motion. If your monthly payments feel too high or your rate feels outdated, take time to explore whether refinancing could make sense for you.

Refinancing your student loans allows you to replace one or more existing loans with a new one—often at a lower interest rate or with new repayment terms. That can help save money on interest, pay off your loans faster, or reduce your monthly payment. A longer term may lower your monthly payment but increase total interest, while a shorter term may raise your payment but reduce overall interest. If refinancing frees up even a little each month, that money can be redirected toward other goals like saving, investing, or paying down higher-interest debt. But the real shift goes beyond the numbers—it’s emotional. Refinancing can be the moment borrowers stop feeling “stuck” and start feeling more in control.

It’s not the right move for everyone—federal loan benefits like income-driven repayment plans and Public Service Loan Forgiveness (PSLF) can be valuable to preserve. But if you’ve already graduated, have a steady income, and want to understand your full range of options, checking your rate takes just minutes and doesn’t impact your credit score. Sometimes that simple act of looking is what builds momentum.

3. Redefine what progress looks like.

There’s no single definition of “doing well” with student loans. When millions of borrowers are redefining what progress means, you have permission to define it your way. For some, progress means paying extra each month; for others, it’s finally automating payments or consolidating multiple loans into one simpler plan. Every step, if it brings you more clarity or calm, counts.

Try focusing less on the finish line (“I need to be debt-free”) and more on the next small move you can make today. The smaller the goal, the easier it is to build momentum—and momentum is what turns financial stress into financial confidence.

Reframing the story

Refinancing isn’t a cure-all, but it’s one of several powerful tools that can help you move from reactive to proactive with your student loans. It’s not just about lowering a rate—it’s about aligning your payments with your goals, freeing up space in your financial plan, and giving yourself room to grow.

Borrowers who refinance often experience both financial and emotional relief: less anxiety, more confidence, and a clearer sense of direction. When you feel in control of your debt, you’re more likely to make better long-term decisions—saving more, planning more, and worrying less.

Your student loans don’t define you—your response to them does.

And you are not alone. You have resources to get the understanding you need, turn it into momentum, and that momentum into financial confidence. The most empowered borrowers aren’t the ones with perfect financial records; they’re the ones who know where they stand, explore their options, and take action that supports their future. That’s how understanding turns into momentum, and momentum into freedom.

Disclaimer: This article provides personal finance educational information, and it is not intended to provide legal, financial, or tax advice.

This story was produced by Earnest and reviewed and distributed by Stacker.