As of October 1, federal student loan repayments have resumed, signaling the conclusion of a more than three-year hiatus necessitated by the COVID-19 pandemic. This development has thrust millions of borrowers into a complex and multifaceted dilemma: How to navigate the repayment of their loans in an era marked by surging inflation.

The magnitude of this issue cannot be overstated. More than 45 million borrowers are burdened with a staggering debt load totaling $1.6 trillion. It’s a financial burden many cannot bear, and policymakers are acutely aware of the challenges posed by widespread loan forgiveness. In fact, student loan debt now stands as the most significant asset on the federal government’s balance sheet.

For the typical student loan borrower, the weight of debt looms large, with an average balance approaching $40,000 — though many face even greater financial burdens. Escalating costs of housing, food and other essentials have rendered it increasingly challenging for borrowers to accommodate loan payments within their strained budgets.

Compounding this dire situation is the alarming fact that inflation has soared to a 40-year high. This relentless surge in prices further erodes the purchasing power of borrowers, leaving them with even fewer resources to allocate to the most basic necessities, let alone their looming student loan obligations.

While the Biden administration has taken some steps to alleviate this crisis, such as extending the repayment pause and introducing new income-driven repayment plans, it’s clear that politically oriented solutions fall short of addressing the fundamental issue of spiraling student loan debt.

In light of these pressing circumstances, it is evident that the federal government must attempt to adopt more comprehensive measures to assist borrowers in repaying their loans and prevent the crisis from escalating further — while maintaining fairness to those who choose a trade or another path without assuming debt for college.

In the interim, borrowers must conduct a meticulous assessment of their individual financial situations and select a repayment plan that aligns with their capabilities. For those grappling to make ends meet, reaching out to their loan servicer becomes essential. These servicers can provide invaluable guidance on various options, including forbearance or deferment plans.

Furthermore, income-driven repayment schemes warrant consideration, especially for those with limited income or substantial debt loads. These plans cap monthly payments at a percentage of discretionary income, rendering them a viable option for individuals facing financial hardship.

Another avenue worth exploring is participation in student loan forgiveness programs. Both federal and private initiatives offer debt relief to borrowers involved in specific fields, such as education or public service. Eligibility for these programs can significantly alleviate the repayment burden — however, it isn’t easy to qualify. Even though the borrowers can’t afford to pay, the politicians know the government can’t forgive.

Even for those unable to afford full monthly payments, making modest contributions can be impactful. Every dollar paid brings borrowers closer to reducing their outstanding loan balance, regardless of the sum’s size.

Borrowers must acknowledge that they are not alone in this struggle. Millions of others share similar challenges in repaying their student loans, and resources are readily available for assistance. Seeking help and information is an essential step toward finding a solution.

The federal government should consider a model like we have begun at Treedom. Our scholarship model rewards students for community service. There can be a compromise where service to communities can contribute to alleviating student debt. Many communities, like borrowers, desperately need assistance — it seems like a natural fit to consider. Existing public debt forgiveness programs for law enforcement, firefighters and other government employees that serve others are a good start.

Looking ahead, prospective borrowers should exercise caution when contemplating the extent of their educational debt. Financing education should be thoughtful, considering alternative avenues like scholarships and grants. Furthermore, aspiring students should explore opportunities to minimize living expenses while in school. If borrowing becomes a necessity, a thorough understanding of loan terms and affordability is paramount.

The student loan debt crisis is a complex issue with no quick-fix solutions. By implementing measures to aid current borrowers and educating future generations about the potential pitfalls of excessive debt, we can gradually move toward a more equitable and sustainable system for financing education.