Student loans: how you think things will go vs. how they actually go

By Corey Buhay | Published on October 21, 2025

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Student loans can be confusing—especially when your expectations don’t end up matching reality. Sometimes the student loan repayment process feels more complicated than you might have imagined. And for many students, payoff takes longer than they were initially led to believe.

There’s a ton of misinformation out there, and it’s hard to know what’s what. To help clear things up, we’ve put together a guide to a few of the more common myths. Here are a few student loan expectation vs. reality scenarios—plus the repayment, forgiveness, and cosigner release facts you’ll need to feel confident and prepared going forward.

Student loan forgiveness: Expectation vs. reality

Expectation: “My loans will be forgiven automatically.”
Reality: Student loan forgiveness is a great tool for debt relief, and it’s achievable for millions of federal borrowers. However, most folks don’t realize that it isn’t automatic. You’ll typically need to enroll or apply in the appropriate program, submit annual paperwork, and make diligent on-time payments for 10 to 25 years before you’re eligible for debt cancellation.

Key takeaway: The student loan forgiveness process is more involved than many students initially realize, but it can be well worth it if you qualify and remain diligent about your paperwork.

Cosigner release: Expectation vs. reality

Expectation: “I’ll just remove my cosigner later.”
Reality: Thousands of students opt to borrow alongside a cosigner because it’s such a smart way to reduce your interest rates and have a partner in the borrowing process. However, once you’ve signed up for loans with a cosigner, removing them from the agreement isn’t always easy. Some private lenders offer a distinct pathway for cosigner release from an existing loan, but many don’t. And even if it’s offered, it’s not always guaranteed.

Key takeaway: One option is to refinance your loans. When you refinance, a new lender pays off your existing debts and issues you a new loan in their stead. Because your old loans disappear, so do your cosigner agreements. That allows you to “release” your cosigner from their obligation. Just keep in mind that, to qualify for a refinance without a cosigner, you’ll need proof of stable, consistent income and a strong credit score. Not everyone will qualify, but if you do, it can be a practical path.

Refinancing: Expectation vs. reality

Expectation: “Refinancing only makes sense when rates are super low.”
Reality: It’s true that lower rates typically mean saving more money. However, you don’t necessarily have to wait for the perfect circumstances to see a significant benefit. Even a small drop in interest rate could translate to thousands in savings over the life of the loan. And if you’re on good financial footing, you may qualify for rates that are significantly lower than what you currently have.

Key takeaway: If you’re asking yourself, “Should I refinance my student loans right now?”, consider checking your rate with a few different lenders. See what they can offer you. Plus, you can always refinance again later if rates drop even further in the future.

Repayment timeline: Expectation vs. reality

Expectation: “I’ll pay off my loans within a few years after graduating.”
Reality: It’s easy to imagine getting a good job right out of college, attacking your loans with gusto, and getting out of debt well within a decade. But while the federal Standard Repayment Plan defaults to 10 years, many students end up having to extend those timelines. According to the Education Data Initiative, American undergraduates take 20 years to pay off their loans on average.

That’s super normal. Sometimes you don’t get the job you expect. Sometimes costs of living creep up on you, or your bills represent a much higher portion of your take-home pay than you originally expected. Other times, life happens—you get married, start a family, or decide to go back to school, and you have to recalibrate your payoff timeline accordingly.

Key takeaway: If loan payoff takes longer than you expect, don’t beat yourself up. Do what you can to keep chipping away at your loans: set up automatic payments, consolidate or refinance when it makes sense, and stick with it. Loan payoff is a marathon, not a sprint.

Student loan grace periods: Expectation vs. reality

Expectation: “I have tons of time after I graduate to deal with my loans.”
Reality: It’s true that most lenders offer a post-graduation grace period. During this period, loan payments aren’t yet required, and you get a precious window of time to apply for jobs and find your footing after college. The federal government and many private lenders offer a six-month grace period. (Earnest offers nine months.)

That might seem like a lot. However, the months fly by faster than you might expect, and repayment can sneak up on you if you’re not prepared.

Key takeaway: Soon after you graduate, sit down with your loans, take stock of your balances and upcoming payment amounts, and build a monthly budget to make sure you can afford your bills. Then, set up automatic payments or create some calendar reminders to ensure your first payment (and every subsequent payment) goes out on time.

Explore student loan options that match your reality

Have you had a few inaccurate expectations about the student loan repayment process? These are complex topics, and it’s tough to get it all right from the get-go. All you can do now is gently correct your expectations and move forward armed with the facts.