My Student Loan Situation: $47k and What I'm Doing About It
- Sara Hudson
- Jan 19
- 11 min read
Updated: Jan 26
$47,328 in student loan debt. I'm still in school. I haven't even graduated yet, and I'm already nearly $50,000 in debt...
$47,328 in student loan debt. I'm still in school. I haven't even graduated yet, and I'm already nearly $50,000 in debt. My $47K in student loans is why my net worth is -$47,328.
Some of its deferred (no payments required while I'm enrolled). Some of its accruing interest I'm not paying. And some of it requires payments right now—$85 a month I can barely afford while making $1,840 total income.
This is my reality as a college student with massive student loan debt. And if you're in a similar situation—watching that number grow while you're trying to finish your degree—this post is for you.
I'm going to break down:
- How I got to $47K in debt
- The difference between federal and private loans (and why it matters)
- What I'm required to pay while still in school
- How much interest is piling up
- My plan for after graduation
- What repayment options actually exist
No sugar-coating. No "I paid off $100K in 2 years" BS. Just real talk about managing student loans when you're still a broke student.
How I Got Here: The Path to $47K in Debt
I didn't start college planning to borrow $50,000. Nobody does.
My College Timeline
2020-2021: Community College (Freshman Year)
- Started at community college to save money
- Lived in the city with roommates, worked part-time
- Borrowed: $3,500 in federal subsidized loans
- Cost was low, debt was manageable
2021-2022: Sophomore Year (Community College)
- Got pregnant in spring semester
- Borrowed: $5,500 in federal loans (subsidized + unsubsidized)
- Total debt so far: $9,000
2022: Took Time Off
- Had my daughter
-Bought a house & moved
- Couldn't go to school and manage newborn
- Loans went into grace period
- No payments required (yet)
2023: Returned to School (Transferred to State University)
- Now at 4-year university
- Tuition jumped from $3K/year to $12K/year
- Borrowed: $12,500 in federal loans
- Hit my federal borrowing limit for the year
- Total debt: $21,500
2024: Junior Year
- Borrowed: Another $12,500 in federal loans
- Still not enough to cover everything
- Had to get private loan for $8,975 to cover remaining tuition + books
- Total debt: $42,975
2025: Senior Year (Current)
- Borrowed: $7,500 more in federal loans (my limit as a dependent student)
- Interest has been piling up on unsubsidized loans
- Total debt now: $47,328 (and growing)
Why So Much Debt?
Federal loans don't cover everything:
- Federal loan limits for dependent undergrads: $31,000 total
- My university costs ~$15,000/year (tuition + fees + books)
- Federal loans covered maybe 60-70% of costs
- The rest came from working (paid for living expenses) and private loans (paid for tuition gaps)
I had to borrow more because:
- I'm a parent (had to live off-campus, not in dorms)
- No family help (my mom helps with childcare, but not money)
- Working full-time wasn't an option (I'm in school + parenting)
- Financial aid didn't cover everything
Breaking Down My $47K: Federal vs. Private
Not all student loans are created equal. Here's my breakdown:
Federal Student Loans: $38,450
Subsidized Loans: $15,200
- What this means: Government pays the interest while I'm in school
- Interest rate: 4.53% (fixed)
- Current payment required: $0 (deferred while enrolled)
- Interest accruing: $0 (covered by government)
Unsubsidized Loans: $23,250
- What this means: Interest accrues from day one, even while I'm in school
- Interest rate: 5.50% (fixed)
- Current payment required: $0 (deferred while enrolled)
- Interest accruing: ~$107/month
Total Federal Loans: $38,450
- Monthly interest piling up: $107
- Grace period after graduation: 6 months
- Required payments: Start 6 months after I graduate
Private Student Loan: $8,975
From Sallie Mae:
- Interest rate: 8.5% (fixed—ouch)
- Current payment required: $85/month (no deferment option)
- Interest accruing: $64/month
- Grace period: NONE (payments started immediately)
Why private loans are brutal:
- Higher interest rates (8.5% vs. 4-5% for federal)
- No deferment (I have to pay even while in school)
- No income-driven repayment options
- Fewer protections if I can't pay
- My cosigner is on the hook if I default
The Interest Problem: How Much Is Piling Up?
Even though I'm not required to pay most of my loans while in school, interest is still accruing on my unsubsidized federal loans and my private loan.
Here's the math:
Unsubsidized Federal Loans ($23,250 at 5.5%):
- Monthly interest: $107
- From now until graduation (May 2026): 16 months
- Total interest that will pile up: $1,712
Private Loan ($8,975 at 8.5%):
- Monthly interest: $64
- I'm paying $85/month, so $21 goes to principal
- By graduation, I'll have paid down ~$336 of principal
- Remaining balance: $8,639
When I graduate, my total debt will be around $48,800 (if I don't borrow any more).
That extra $1,700+ in interest will capitalize (get added to my principal balance), meaning I'll be paying interest on interest.
What I'm Required to Pay Right Now
While I'm still in school, here's what I actually have to pay:
Monthly Payments While Enrolled
Loan Type | Balance | Required Payment | What I'm Actually Paying |
Federal Subsidized | $15,200 | $0 deferred | $0 |
Federal Unsubsidized | $23,250 | $0 deferred | $0 |
Private Loan | $8,975 | $85/month | $85/month |
TOTAL | $47,425 | $85/month | $85/month |
That $85/month hurts.
When you're making $1,840/month total and trying to feed a family, pay rent, and survive, $85 feels massive.
But I have to pay it. If I don't:
- My credit score tanks
- My cosigner's credit score tanks
- The loan goes into default
- They can sue me and garnish my wages
So I pay it, even when it means I'm eating rice and beans that week.
Should I Pay the Interest on My Federal Loans?
Financially, yes. Realistically, no.
Here's the dilemma:
If I paid the $107/month interest on my unsubsidized federal loans:
- I'd prevent that $1,700+ from capitalizing
- I'd save money long-term
- It's the "smart" financial move
But I can't afford it because:
- I'm already paying $85/month on my private loan
- $85 + $107 = $192/month in student loan payments
- That's more than I spend on food ($200/month for 3 people)
- I barely have $300-400 left over each month after all expenses
My choice: Survive now, deal with capitalized interest later.
Is it ideal? No. But I'm in survival mode, not optimization mode.
What Happens When I Graduate (Spring 2027)
Graduation is my finish line and my starting gun.
The Grace Period
Federal Loans:
- 6-month grace period after graduation
- No payments required for 6 months
- Interest keeps accruing on unsubsidized loans
- Payments start November 2027
Private Loan:
- Already paying, will continue
- No grace period (I've been paying since 2024)
Projected Monthly Payment Scenarios
When my grace period ends, here's what I'll owe:
Scenario 1: Standard 10-Year Repayment Plan
- Monthly payment: $485
- Repayment term: 10 years
- Total paid over life of loan: $58,200
- Total interest paid: $10,000
Can I afford this?
If I get a job making $42-48K (my field's starting salary), my take-home will be $2,800-3,200/month. A $485 payment would be 15-17% of my income. Tight, but doable.
Scenario 2: Income-Driven Repayment (IDR)
This is probably what I'll actually do.
How it works:
- Payment is 10-15% of my "discretionary income"
- Discretionary income = Your income minus 150% of poverty line
- Example: If I make $45K, my payment would be $250-300/month
- Repayment term: 20-25 years
- After 20-25 years, remaining balance is forgiven (but I pay taxes on forgiven amount)
Pros:
- Lower monthly payment
- More affordable when starting out
- Adjusts if my income drops
Cons:
- I'll pay WAY more interest over the life of the loan
- Takes 20+ years to pay off
- The forgiven amount is taxable income (could be a huge tax bomb)
Scenario 3: Public Service Loan Forgiveness (PSLF)
If I work for a government agency or nonprofit:
- Make 120 qualifying payments (10 years)
- Remaining balance is forgiven TAX-FREE
- Must be on an income-driven plan
- Must work full-time for qualifying employer
This is appealing because:
- Tax-free forgiveness (unlike regular IDR)
- Only 10 years instead of 20-25
- My field has nonprofit/government jobs available
The catch:
- Have to stay in qualifying job for 10 years
- Can't switch to private sector without losing progress
- PSLF has a reputation for denials (though it's gotten better)
I'm seriously considering this route.
My Private Loan Strategy
My private loan doesn't qualify for any of the federal programs above.
My plan:
- Keep paying the $85/month minimum while in school
- After graduation, throw extra money at it
- Pay this off FIRST (highest interest rate at 8.5%)
- Goal: Pay it off within 3-5 years of graduating
Why pay private loan first:
- Highest interest (8.5% vs. 4-5% federal)
- No forgiveness options
- No income-driven repayment
- Getting rid of this frees up cash flow
What I'm Doing NOW to Prepare
Even though I'm still in school, here's what I'm doing:
1. Tracking Everything
I log into StudentAid.gov every month to:
- Check my loan balances
- See how much interest has accrued
- Make sure my deferment status is correct
- Track my overall debt
This is free and everyone with federal loans should do it.
2. Making My Required Payment
$85/month to Sallie Mae. On time, every time. Even when it hurts.
Suggested Read: This is why I can only pay $85/month on my private loan.
3. NOT Taking Out More Loans (If Possible)
I'm trying to avoid borrowing more for my final semester. I'm:
- Working as much as I can
- Applying for scholarships (haven't won any yet, but trying)
- Buying used textbooks or renting
- Minimizing any "extra" costs
4. Researching Repayment Options
I'm educating myself on:
- Income-driven repayment plans
- Public Service Loan Forgiveness
- Which jobs in my field qualify for PSLF
- How to calculate what my payments would be
Resources I'm using:
- "Student Loan Solution" book - breaks down all repayment options
- Reddit's r/StudentLoans (surprisingly helpful)
5. Building Emergency Fund
I have $50 in savings right now. Goal is to have $500 by graduation.
Why? Because the 6-month grace period is NOT a vacation. I need to:
- Find a job
- Move if necessary
- Get set up in adult life
- Prepare for loan payments to start
Having even $500 would help.
Resources for Managing Student Loans
Free Government Resources
- Track all your federal loans
- Apply for income-driven repayment
- Estimate monthly payments
- Check loan forgiveness eligibility
- This is your source of truth for federal loans
NSLDS (National Student Loan Data System):
- See every federal loan you've ever taken
- Verify loan servicers
- Check disbursement amounts
Tools & Calculators
Federal Student Aid's Loan Simulator:
- Free tool on StudentAid.gov
- Shows you what you'd pay under each repayment plan
- Based on your actual loan amounts
- Use this before you graduate to plan
- Free debt payoff calculator
- Helps you see avalanche vs. snowball methods
- Can input all your debts (student loans + credit cards)
Books
- Breaks down every repayment option
- Explains PSLF clearly
- Written for real people, not financial experts
- How to minimize student loans in the first place
- Good for anyone still in school or with younger siblings
- Eye-opening look at the student loan industry
- Makes you feel less alone in your rage
Tracking Tools
- Physical planner for tracking loan balances
- Motivating to see progress
The Mental Weight of $47K in Debt
Let me be real for a second.
This debt keeps me up at night.
I think about it when I'm studying. I think about it when I'm playing with my daughter. I think about it when I see other students talking about their post-graduation trips to Europe.
I feel:
- Guilty that my daughter has a mom with massive debt
- Angry that getting an education costs this much
- Scared that I won't be able to pay it back
- Trapped by a decision I made in my mid 30s
But here's what helps:
1. I'm not alone. 43 million Americans have student loan debt. Average balance for bachelor's degree: $28,000. I'm higher than average, but I'm far from the only one.
2. I'm getting something valuable. My degree will increase my earning potential. Starting salary in my field: $42-48K. Without a degree, I'd be stuck at minimum wage jobs.
3. I have a plan. I'm not ignoring this. I'm tracking it, researching options, and preparing for post-graduation.
4. This is temporary. In 10-25 years, this will be paid off. It feels like forever, but it's not actually forever.
The worst thing I could do: Bury my head in the sand and hope it goes away.
So I'm facing it head-on.
Advice for Current Students With Loans
If you're in school and watching your debt grow, here's what I'd tell you:
1. Know What You Owe
Log into StudentAid.gov RIGHT NOW. See your balances. Know your interest rates.
You can't make a plan if you don't know the numbers.
2. Understand Federal vs. Private
Federal loans = better:
- Lower interest rates
- Deferment while in school
- Income-driven repayment options
- Forgiveness programs
Private loans = last resort:
- Higher interest
- Fewer protections
- No forgiveness
- No income-based payments
Always max out federal loans before touching private.
3. Borrow the Minimum, Not the Maximum
Just because you're offered $12,500 doesn't mean you have to take it all.
I wish I'd borrowed less. Every dollar you don't borrow is a dollar you don't have to pay back (with interest).
4. Pay Interest If You Can
If you can afford to pay the interest on unsubsidized loans while in school, do it.
I can't, but if you can, you'll save money long-term.
5. Graduate
The worst thing you can do: Drop out with debt and no degree.
Then you have the debt but not the increased earning potential. Finish if you possibly can.
6. Start Planning Now
Don't wait until graduation to think about repayment. Research now:
- What are the repayment options?
- What will your payment be?
- Do jobs in your field qualify for PSLF?
- What's your financial plan for after graduation?
What I'll Do After Graduation
Month 1-6 (Grace Period):
- Find a job (ideally one that qualifies for PSLF)
- Move if necessary
- Set up my adult budget with loan payments included
- Contact loan servicer to choose repayment plan
Month 7+ (Payments Start):
- Enroll in income-driven repayment (probably REPAYE or PAYE)
- Pay minimum on federal loans
- Throw every extra dollar at private loan
- Goal: Pay off $8,975 private loan in 3 years
Year 3-10:
- Private loan is gone
- Aggressively pay down federal loans OR
- Stay in PSLF-qualifying job and make 120 payments for forgiveness
My target: Be debt-free (or forgiven) by age 32.
Download My Student Loan Tracker (Free)
I created a tracker to help manage student loans while in school.
What's included:
✓ Loan inventory worksheet (federal, private, interest rates)
✓ Monthly interest calculator
✓ Repayment plan comparison
✓ Grace period countdown
✓ post-graduation budget planner
Suggested Reads:
Your Turn: What's Your Student Loan Situation?
Drop a comment:
- How much do you owe?
- Are you in school or graduated?
- What's your biggest fear about your loans?
- Any advice for others?
Let's normalize talking about student debt.
The shame and secrecy don't help anyone. The more we talk about this openly, the less alone we all feel.
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