“I’d Rather Turn My Degree Back In”: Kansas City Borrowers Grapple With Surging Student Loan Payments
For many Kansas City-area graduates, the excitement of walking across the stage to receive their diplomas has faded into a grim reality: student loan payments that feel impossible to manage. As federal payment pauses end and interest rates climb, borrowers across the metro are sharing stories of financial strain—and even regret.
“I worked two jobs through college to avoid debt, but it still wasn’t enough,” says Marissa Thompson, a 28-year-old Overland Park resident with a master’s degree in social work. “Now, my monthly payments are higher than my rent. Sometimes I wonder if I’d have been better off not getting this degree.” Her sentiment—”I’d rather turn my degree back in”—isn’t unique. Across social media and local community forums, borrowers are voicing frustration over payments that have doubled or tripled overnight, leaving them questioning the value of their education.
Why Payments Are Skyrocketing
The resurgence of student loan payments after a three-year pandemic freeze has collided with broader economic pressures. For Kansas Citians, stagnant wages and rising living costs amplify the pain. But the immediate culprit is often interest capitalization—a process where unpaid interest during the pause was added to the principal balance. For example, a borrower with $50,000 in loans at 6% interest saw their balance grow by $3,000 annually during forbearance. Now, that “new” debt is factored into repayment calculations.
Compounding the issue is the failure of federal relief programs to meet expectations. While President Biden’s proposed $10,000–$20,000 forgiveness plan offered hope to millions, its rejection by the Supreme Court in 2023 left borrowers like Thompson empty-handed. Meanwhile, revised income-driven repayment plans, such as the SAVE program, have been slow to roll out, causing confusion and delays.
The Emotional Toll of Debt
Financial advisors in the metro report a surge in clients seeking help with student loans. “People aren’t just stressed—they’re ashamed,” says Lee Henderson, a Kansas City-based financial coach. “They feel like they’ve failed, even though the system sets them up to struggle.” Mental health professionals echo this, noting increased anxiety and depression among borrowers.
Take Jake Morales, a 31-year-old Lee’s Summit teacher. After earning a degree in education, he now owes $68,000. Under his current repayment plan, he’ll pay over $500 monthly for 20 years—only to face a tax bomb on the forgiven amount. “I love teaching, but the math doesn’t add up,” he says. “If I could return my degree to erase this debt, I’d do it tomorrow.”
Local Solutions and Community Support
While federal policy remains gridlocked, Kansas City organizations are stepping up. Nonprofits like KC Student Debt Relief host free workshops to help borrowers navigate repayment options. “Many people don’t realize they qualify for lower payments or temporary forbearance,” says director Clara Nguyen.
Some borrowers are also turning to side hustles. Olivia Carter, a graphic designer in Kansas City, started freelancing to cover her $800 monthly payments. “I work nights and weekends just to stay afloat,” she says. “It’s exhausting, but I don’t see another way.”
For others, drastic measures are on the table. Refinancing with private lenders can lower rates but strips away federal protections. Some are even considering career shifts to higher-paying industries—a trend educators worry could hollow out critical fields like healthcare and social services.
The Ripple Effect on the KC Economy
The student debt crisis isn’t just a personal problem—it’s reshaping the local economy. Young professionals are delaying home purchases, avoiding entrepreneurship, and cutting back on discretionary spending. “These borrowers aren’t investing in our community,” says Henderson. “They’re funneling money toward debt instead of local businesses.”
Small business owner Marcus Reed sees the impact firsthand. His Crossroads District coffee shop, once a hub for recent grads, has seen fewer customers since payments resumed. “People used to come in daily for lattes and pastries,” he says. “Now, they’re budgeting tightly. It’s hurting all of us.”
What Borrowers Can Do Now
While systemic change is slow, experts urge borrowers to act proactively:
1. Re-evaluate repayment plans. Income-driven options like SAVE or PAYE could lower monthly bills.
2. Apply for forbearance or deferment if facing short-term hardship.
3. Explore employer assistance programs. Companies like Cerner and Hallmark now offer student loan benefits.
4. Seek nonprofit guidance. Groups like KC Student Debt Relief provide free, unbiased advice.
Above all, Henderson advises reframing the narrative. “This isn’t your fault. The system is broken, but there are tools to survive it. Don’t give up on the degree you worked so hard for.”
A Long Road Ahead
The student loan crisis has no quick fixes, but Kansas Citians are finding resilience in shared struggle. Online support groups and local meetups are fostering solidarity among borrowers. “Knowing I’m not alone helps,” says Thompson. “We’re all fighting the same battle.”
As policymakers debate reforms, borrowers cling to small victories—a lower payment here, a temporary deferment there. For now, the message from the metro is clear: Education shouldn’t come at the cost of financial ruin. Until that changes, the chorus of “I’d rather turn my degree back in” will keep growing—one stressed borrower at a time.
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