Hi AngstyLady, in my experience, people don't think of us as much as we think they do. For example, your boss needs someone to fill a position and he thinks you are an option. There are likely others he could hire. It's not personal.

The people you pass in the neighborhood that you know -
they are wrapped up in their own worlds, immediate concerns, making a mental grocery list as they walk to the store, etc.

You don't need to explain yourself to anyone. Call your boss and state that your circumstances have changed due to school preparation and therefore politely decline the rehire.

As for the neighborhood - go out if it suits you and please don't worry so much about what others think. In the chance someone is thinking about you, that's fine. You've done nothing wrong and I think your anxiety has gotten a hold of you a bit.

Ideally, talk with a therapist and perhaps see a pdoc if things worsen. Be well. xoxo