'Should I Pay Off My Annoying Student Loan?...I'm So Tired Of Paying It' – Here's What Suze Orman Says

For many borrowers, student loans linger long after graduation — and for some, they become more than just a financial burden. They're frustrating, persistent reminders of debt that won't go away. 

One listener recently brought this up on the "Women & Money" podcast hosted by Suze Orman and Kathy Travis, asking a question many can relate to: "Should I pay off my annoying student loan?"

Here's what Orman had to say.

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The Listener's Dilemma: A $3,600 Student Loan That Won't Quit

The question came from Russell, a listener from Louisiana. He explained that he graduated in 2012 and still has $3,600 in student loan debt. Despite the relatively small balance, the loan has been "on [his] back for 13 years," and he's simply tired of making the monthly payments. He asked whether he should just pay off the remaining amount using his savings or keep chipping away with monthly payments.

Orman's answer was immediate and clear: "The answer is yes." 

KT chimed in too: "Set it and forget it, Russell. You’re done…School is out."

The consensus? If you have the money available in savings and doing so won't harm your financial security, paying off a small, lingering balance can offer peace of mind — and eliminate one less bill to worry about.

Why Paying It Off Now Might Make Even More Sense

In a recent blog post, Orman issued a broader warning about federal student loans. After a five-year pause, the government resumed collecting defaulted student loans this year — and the consequences for falling behind are serious.

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According to the U.S. Department of Education, if a borrower defaults on their student loans, the government now has the authority to:

• Withhold federal tax refunds
• Garnish up to 15% of after-tax wages
• Seize part of Social Security benefits

This is particularly important for older borrowers or parents who took out federal PLUS loans for their children's education. 

"Ignoring that this is happening or thinking you can hide from the government debt collectors will only make things worse," Orman wrote. 

The Bigger Picture: Know Where You Stand

Even if you’re not in default, it’s a good idea to double-check your student loan status. Visit the Federal Student Aid website to view your loan details, servicer information, and repayment status. If you're behind on payments, you may be able to avoid default by entering a repayment plan or exploring a loan rehabilitation program.

For those already in default, the Department of Education offers options like consolidation or rehabilitation to get back on track — but the sooner you act, the better.

Bottom Line: Don't Let a Small Balance Linger

If you have a low student loan balance and the ability to pay it off from savings without jeopardizing your retirement, it might be time to end the monthly hassle.

Whether you're 25 or 55, the takeaway is the same: If it's within reach and won't hurt your financial future, paying off that "annoying" loan could offer a big emotional and financial relief.

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