High school graduation should feel like a celebration. The hard work is behind you and the future feels wide open. The diploma, finally in hand. But for millions of new high school graduates, the shadow of future student loan debt is already looming.
We are entering a time where student loan debt is more widespread than ever. According to the Federal Reserve, Americans owe over $1.7 trillion in student loans as of 2024. The average undergraduate borrower leaves college owing more than $30,000. And that’s before factoring in private loans, credit cards, or unexpected life expenses that often follow college enrollment.
With tuition costs rising and financial aid not always keeping pace with financial needs, many families turn to loans just to make college possible. But here’s the truth: while student debt can be a tool to access further education, that debt can become an overwhelming burden if not handled carefully. At Guardian Litigation Group, we see every day how student debt can spiral, especially for young people who are still trying to build a stable financial footing.
Your Financial Future Starts Now
Debt opens doors for education and opportunity, but if mishandled, it can shut down your financial future fast. Debt is how people attend college, buy homes, start businesses, and start to build a future with someone. But left unmanaged, it can also be a major source of financial stress, especially for those just beginning their careers. At Guardian Litigation Group, we work every day with people overwhelmed by debt — and we know that the earlier you start managing it, the better off you’ll be.
Whether you owe $5,000 or $50,000, here are five ways to get ahead of your debt before it starts running your life:
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Know Exactly What You Owe
It may sound obvious, but many grads get into student debt without a clear picture of their loan totals, interest rates, or repayment terms. Gather all your loan info in one place and use federal loan tools (like studentaid.gov) to break down prepayment options. Clarity is the first step to control. To stay updated on recent loan forgiveness efforts that could impact new borrowers, including the recent Navient settlement, read our full update on student loan debt relief and forgiveness.
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Start Budgeting Before the Paychecks Start Rolling In
Set realistic expectations for post-grad life. Map out your expected income, basic expenses, and loan payments. Apps like Mint or YNAB can help, but even an Excel or Google Sheets spreadsheet works. While budgeting, watch out for sneaky subscriptions and auto-renewals that eat up your cash flow. Read more about how to cancel ghost subscriptions.
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Understand the Difference Between Good Debt and Bad Debt
Student loans can be a long-term investment into your future, but high-interest credit cards or payday loans? Not so much. Keep balances low and avoid quick-cash solutions that trap you later on. If you’re unsure about the debt, talk to a financial professional before saying yes to new debt. For a deeper dive into which types of debt can help or hurt your financial future, check out our full guide on good debt vs. bad debt.
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Make Payments, Even If They’re Small
If your loans are in grace or deferment, consider making small monthly payments anyway. Even $50 a month toward interest can reduce your total cost significantly and shows lenders you’re serious about responsibility.
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Know Your Rights if Things Get Hard
Life happens. If you lose your job, face a medical issue, or feel overwhelmed, you have options. From deferment to income-based repayment to legal protections under the Fair Debt Collection Practices Act, help is out there. And if things spiral, Guardian Litigation Group is here to advocate for you.
Don’t Get Stuck: What You Should Know About Student Loans
How much student debt is too much?
Every situation is different, but a common rule of thumb is to borrow no more than your expected first-year salary after graduation.
When should I start repaying my student loans?
As soon as possible. Early payments, even small ones, can help you reduce interest and get ahead of your loan balance.
Can student loans be discharged in bankruptcy?
Very rarely, but recent changes have made it more possible in extreme hardship cases. Legal advice can help clarify your options.
What happens if I default on my student loans?
Your credit score will be impacted, wages can be garnished, and legal action may be taken. Act early and aggressively to avoid defaulting on your loans.
Are private student loans riskier than federal loans?
Generally, yes. Federal loans offer more protections, such as income-driven repayment plans, deferment, and possible forgiveness programs.
Can I refinance my student loans?
Yes, but refinancing federal loans into private loans may remove federal protections. Always weigh the pros and cons carefully when coming to a decision.
What if I can’t make my payments?
Reach out to your loan servicer immediately. You may qualify for deferment, forbearance, or income-based repayment options.
Without a plan, small student debts can snowball into a lifelong struggle. Learn how to interrupt that cycle before it starts in our guide on breaking the debt cycle.
Graduation is just the beginning to your life as an adult. And how you handle your finances now can shape the years ahead. Debt doesn’t have to be a burden. With the right mindset, the right tools, and a support system you trust, it can simply be another part of the adulting journey. Congratulations, Class of 2025. You’ve got this. And we’ve got your back.
The information provided in this blog article is for informational purposes only and should not be construed as legal advice. It is not intended to create an attorney-client relationship. This content also does not constitute financial advice. For personal legal, financial, or debt counseling decisions, you should consult with a qualified attorney, licensed financial advisor, or certified credit counselor.
