Student Loans, Financial Pressure and What It Means for Your Future

Recent national coverage has highlighted growing frustration among graduates about the long-term cost of student loans. Many young professionals describe repayments as feeling like an “extra tax” on their income — particularly as repayment thresholds are frozen while living costs continue to rise.

At Boom Community Bank, we’re not here to debate policy. But we are here to talk about what this means for real people — and how to take back control if debt feels overwhelming.

Why Student Loan Repayments Feel Different Right Now

For many graduates, student loan repayments are:

• Income-contingent – you only repay above a certain salary

• Automatically deducted through payroll

• Long-term – often lasting up to 30 years

• Interest-bearing, which can make balances feel like they’re not reducing

When wages rise but thresholds are frozen, repayments increase. For some households already facing higher rent, mortgages, childcare and energy costs, this can create a feeling of financial “squeeze”.

Even if student loans are structured differently from other borrowing, the psychological impact can be significant. When combined with credit cards, overdrafts, car finance or personal loans, overall monthly commitments can begin to feel unmanageable.

The Hidden Impact of Multiple Debts

Student loans on their own may be manageable. But when layered with:

• Credit card balances

• Buy now, pay later commitments

• Personal loans

• Catalogue debt

• Overdraft usage

…the overall financial picture can become stressful.

Unlike student loans, most of these debts:

• Charge higher commercial interest rates

• Require fixed monthly repayments

• Can damage credit scores if missed

This is where understanding your total debt position becomes crucial.

When Does Debt Consolidation Make Sense?

Debt consolidation isn’t about adding more debt. Done responsibly, it can be about:

• Combining several high-interest debts into one manageable payment

• Potentially reducing overall interest costs

• Improving budgeting clarity

• Reducing financial stress

For many people, student loans can’t be consolidated in the traditional sense. However, reviewing and consolidating other debts can free up breathing space in your monthly budget.

At Boom Community Bank, we often speak to members who feel:

“I’m earning more than ever, but I’ve never felt so financially stretched.”

Often, it’s not one large debt causing the issue — it’s the combination.

A Community-Based Approach to Borrowing

As a community bank, our focus is responsible lending and financial wellbeing. That means:

• Clear, transparent terms

• No hidden fees

• Supportive conversations, not judgement

• Encouraging sustainable repayment plans

Debt consolidation isn’t right for everyone. Sometimes budgeting support, restructuring payments, or simply reviewing your financial plan is the better option.

But doing nothing — especially when high-interest debt is involved — can cost more in the long run.

Practical Steps You Can Take Today

If you’re feeling the pressure of repayments:

1. List every debt – balance, interest rate, and monthly payment

2. Separate student loans from commercial borrowing

3. Check which debts are costing you the most in interest

4. Avoid using credit to plug monthly shortfalls

5. Seek advice early, not when things reach crisis point

Financial stress thrives in silence. Clarity reduces anxiety.

You’re Not Alone

Rising costs and long-term repayment commitments are creating understandable frustration for many working households. While broader systems evolve over time, your personal financial plan can evolve today.

If you’d like to explore whether consolidating high-interest debt could simplify your finances, Boom Community Bank is here to help with clear advice and responsible lending options designed around real people — not profit targets.