student loan repayment tips

Due to the lack of calculation and lack of financial planning, most of the students struggle to pay back their loans. Accounts and finance are not the same; accounts mean doing some calculation and paperwork, however, finance refers to some sort of financial planning. Student loans are a bit overwhelming at first, especially when you have just graduated from your high school, but the repayment of that loan surely puts a lot of weight on their shoulders. Nowadays, the effect of debts is causing some serious health-related problems to the students. Hypertension, anxiety, depression, blood pressure, and stress are adding up to the lives of students from debt-burden. These problems are affecting the barrier- free thinking of the students. The very best way to manage your debts is to be debt-free. Planning for the successful repayment of the loans, students need to put many things into consideration.

Here are some smart tips to help students out effectively for paying their loans successfully.


Put your loans on ascending or descending order. Be it an educational loan, personal loan or a car loan. Put them together in order to interest rate and make a sequence. First, pay those loans with high- interest rates. Suppose, the educational loan is 10%, personal loan is 12% and the car loan is 9%, now the personal loans interest rate is higher than the other, it is better to pay it off first. Early payment of your student loan repayment will lower your debt-income ratio, which means it will be much easier to get a loan when you really need one.  For the other loans, pay them with minimum payment maintenance.


Students should make a plan for the repayments of loans through additional income. There are a lot of ways to earn second income other than the salary which you can only set aside for paying only for loans. Students can do freelance photography, content writing, part-time teaching, be a sales agent, tour guide for a weekend or can also drive Uber  to make extra income and throw it straight to pay off your loans.


“If you buy things that you don’t need; you will have to sell things that you need”. – Warren Buffet There might be many unnecessary items at your home which you are not using from 1 year and there is a chance that these items must be useless and has become a depreciating asset for you. For example old cell phones, computer, laptop, electronic appliances, an old furniture etc.  You can sell these unnecessary items and can pay some amount for the loan repayment.


Student loan payment is due every month, but that does not mean you have to pay once in a month. You can actually pay every two weeks instead of every month. For example; if you get excess cash in terms of tax refunds, cash from a car sale, property inheritance if any, winning a bet, bonus, incentive, variables etc. You can throw away these kinds of excess cash directly on your debt.


The habit of budgeting is an extra blessing. Have a data-driven approach to your spending. Keep your intelligence above emotion while making a budget; it will control your spending. Set a strict cash budget from which you will come to know that where you are spending all of the money. Learn to live as inexpensively as possible and be cash conscious. Take the spending that you have budgeted out for yourself for the month and break it down in a tactical way. Write down the social outings and meal plans for throughout the month. Avoid going to expensive places for shopping instead keep an eye on the seasonal sales and avail some discount coupons and vouchers that will surely help you to remain in your budget.

If you are determined that your student loans should be paid off soon smartly, then the tips provided in this article can definitely help you.

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