From frustration to relief: A teacher’s journey to refinancing their student loans

By Victoria Holliday | Published on October 21, 2025

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For Amy, a young professional working as a behavioral therapist in the Southeast region, her career started with a personal connection. Growing up alongside a cousin with Down Syndrome and volunteering in her school's special education program sparked her passion for helping children with special needs. Today, she works with children on the autism spectrum, helping them develop essential life skills. "Every day is different," she shares with enthusiasm. "I've always loved helping people, specifically kids. People are either one range or the other – they either love kids or want nothing to do with them. I just think they're fun."

But like many recent graduates pursuing meaningful careers in healthcare and education, Amy found herself navigating the complex world of student loan debt.

Navigating student loans from federal to private

Amy's journey with student loans began when federal aid wasn't enough to cover her education costs. With federal loans capped at $15,000, she found herself needing additional funding during her junior year of college. "I wish I would have pushed more and asked more questions," she reflects, noting that some of her coworkers had received significantly more in federal aid. "I was really the first kid in my family that had to figure out student loans at my university."

Pressed for time and lacking guidance, Amy turned to a large financial institution for private student loans. What started as a seemingly straightforward solution became increasingly complex when she ended up with two different types of loans – one with a fixed interest rate and another with a variable interest rate that would eventually climb to nearly 15%.

Financial burden of high-interest loans

The reality of these high-interest loans hit home one month when Amy discovered that out of her $485 monthly payment, only $14 went toward her principal balance. "I remember calling them and asking if this was actually a glitch in the system," she recalls. "I was so confused. That just did it for me – hearing that I paid $485.60 and only $14 went to my principal. I knew I had to find something else at that point."

This experience highlights a common challenge for many students: making major financial decisions without fully understanding the long-term implications of the terms. The stark difference between fixed and variable interest rates, in particular, became a costly lesson. "Looking back, I've learned so much from this whole process," Amy says.

Looking for better options with refinancing

After years of watching her loan payments barely touch the principal, Amy began exploring refinancing options. Her first attempt was with another refinancing company. Though the company's modern website and reputation initially attracted her, the application process was frustrating.

As a behavioral therapist who also managed social media for her clinic, Amy's income structure proved too complex for the lender to evaluate. Despite providing employer documentation explaining her compensation, the company denied her application after running a credit check. "It was frustrating because I was already successfully making higher payments," Amy points out. "If I'm going to refinance to pay a lower amount, you would think that if I was already paying the higher amount, it would be no big deal."

The timing of Amy's refinancing journey coincided with broader economic uncertainties including the 2024 upcoming election year. "I was initially waiting, thinking rates might get better," she admits. Faced with a choice between refinancing her car loan or student loans, Amy chose to prioritize her education debt. "I just figured the student loans were a way bigger number, and I'd rather bring that down."

Refinancing with Earnest

Amy decided to give refinancing another try with Earnest1. "It was super easy," she recalls. "I could scroll through different options and see exactly how changing the payment amount would affect my loan term."

Unlike her previous loans that required a cosigner, Amy could now apply independently. She opted for a longer loan term to secure lower monthly payments, finding comfort in the transparency of the process. "I would rather be paying the least amount every month rather than breaking the bank on student loans," she explains. "It stresses me out so bad."

Improving bad borrowing terms with refinancing

Amy's student loan experience highlights the real challenges and decisions faced by many student loan borrowers. When she borrowed private student loans as a college student, she did so without fully understanding the long-term implication of her loan terms.

Despite initial hesitation about market timing and potential policy changes, she decided to refinance her loans with Earnest, simplifying her loan management and securing a lower interest rate, instead of waiting for "perfect" conditions. Her experience also underscores the value of clear communication with your financial institutions - from user-friendly websites to transparent explanations of loan terms and processing status, and excellent customer service.

See if Earnest student loan refinancing is right for you

See if refinancing your student loans with Earnest could help you save money and simplify your payments2, like it did for Amy. Checking your rate takes just 2 minutes and won't impact your credit score. We never charge origination fees or prepayment penalties, and we let borrowers in good standing skip one monthly payment per year3, fee-free. Choose a refinance loan that fits your financial goals. Ready to take control of your student loans? Visit our rate-calculator today to see how much you could save.

Note: This is a real borrower story and they were compensated for their participation. Individual results may vary based on your unique financial situation and credit profile.

About the Author

Victoria Holliday

Victoria is the Head of Content at Earnest. She brings extensive ed-tech expertise from six years at Chegg, where she developed educational resources reaching over 20 million students nationwide.

With a Master’s in Political Science and experience in public policy from several California campaigns, she’s passionate about creating accessible content that enhances student outcomes in the dynamic world of higher education.

Disclaimer

Disclaimer: The opinions expressed by the interview subjects are not necessarily those of Earnest. This blog post provides personal finance educational information, and it is not intended to provide legal, financial, or tax advice.