What to Do When You Can’t Afford Student Loans

When student loan payments feel impossible, it’s tempting to avoid them altogether. But according to Chief Credit Officer Ellen Falbo, that’s the last thing you should do.

In this episode, Ellen responds to a common internet myth: that if you can’t afford your student loans, you should just ignore them. Her advice? Don’t. Instead, reach out to your loan servicer and explore income-driven repayment options. These plans can significantly lower your monthly payment and help you avoid going into default.

Student debt is stressful—but you don’t have to go it alone. There are tools and programs to help you manage it, and taking action is always better than shutting down.

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Transcription

More in this series

• The most common reason credit scores drop

  • Andrew, a Possible member since 2021, is looking for a straight answer about what most often causes credit scores to fall. Ellen Falbo, Chief Credit Officer at Possible, names the single event that hurts scores the most and explains the life situation that usually triggers it.
  • Duration: 1:14

• How to plan for your future and get out of debt in midlife

  • Tiandra, a Possible member since 2024, asks Ellen Falbo, Chief Credit Officer at Possible, where a middle-aged woman should even start when it comes to getting out of debt. Ellen gets it. She offers a starting point that goes against what most of us were taught: put yourself first, before the debt.
  • Duration: 1:47

• Why Your Credit Score Varies by Bureau

  • Felycia wants to know why her credit reports never seem to match up. Ellen Falbo, Chief Credit Officer at Possible, explains how reporting delays, different scoring models and incomplete credit bureau data create those gaps.
  • Duration: 1:35

• How Many Trade Lines Do You Actually Need?

  • Sharon wants to know how many credit accounts a person should carry. Ellen Falbo, Chief Credit Officer at Possible, shares the number she personally keeps on her own reports and explains why intentional credit use matters more than volume.
  • Duration: 1:12

• Why Credit Drops Fast But Builds Slowly

  • Lisa asks why one missed payment can destroy her credit score while months of on-time payments barely move it. Ellen Falbo, Chief Credit Officer at Possible, explains the predictive logic behind the imbalance and what it takes to prove a missed bill was a one-time event.
  • Duration: 1:20

• Why Paying Off a Loan Can Drop Your Credit Score

  • Shannen paid off her car loan and watched her credit score dip. Ellen Falbo, Chief Credit Officer at Possible, explains why closing a trade line can trigger a temporary drop and how long it typically takes to rebound.
  • Duration: 1:18

• Financial Literacy Class: Credit scores, budgets, and how to use both

  • Your credit score affects more than your ability to borrow money. It can shape your housing options, career prospects, and insurance rates. This session, led by CCO Ellen Falbo at our Full-Court Finance event, covers the credit ecosystem and three practical budgeting methods, with real numbers and concrete examples to help you take control of your finances.
  • Duration: 38:17

• What Credit Score Do You Need to Buy a Car?

  • Damion is trying to finance a vehicle and wants to know what number to aim for. Ellen Falbo, Chief Credit Officer at Possible, breaks down the specific thresholds that matter, from smooth approval to tighter terms to alternative options.
  • Duration: 1:28

• The Best Credit Habit You Can Build

  • Ellen shares the single most impactful credit habit you can develop, plus practical techniques to make it stick.
  • Duration: 2:11

• How to Start Saving for Retirement

  • Retirement savings can often feel out of reach. Ellen shares one habit that makes it manageable.
  • Duration: 1:54

• Credit Tips for College Students

  • One credit card, used responsibly. Ellen shares the habit that sets college students up for long-term credit success.
  • Duration: 0:58

• How do you start a budget?

  • Budgeting can feel overwhelming, but the first step is simple: look at where your money’s actually been going.
  • Duration: 1:25

... (more lessons)

Note

All products are subject to eligibility and approval by Possible Financial Inc. dba “Possible Finance” and “Possible” or its banking partner Coastal Community Bank. Eligibility for a product is not guaranteed.