Looking for ways to repay your Student Loan? We have some expert tips to help you ease through it.
Having a Student Loan to pay often seems like a setback for most people who begin working. Let’s be honest, it kind of is, isn’t it? Imagine you’re fresh out of college, looking forward to your dream job and when it’s time for your pay check to arrive, it’s deducted by half.
Additional Reading: Education Loan: Bank Or NBFC?
Because, oh well, you’ve got to pay off that Education Loan you took to get to your dream job! Don’t get discouraged now. Every cloud has a silver lining after all. And with that in mind we have some amazing tips to help you pay off your student loan.
Additional Reading: Find Your Way Out Of Education Loan
Before Applying For A Student Loan
If you haven’t already applied for an Education Loan yet and are a student, then we have some pointers for you before you go ahead and pick out your loan.
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Search For Scholarships
If you’re applying for an extensive course which is quite pricey, whether within the country or abroad, it would be a good idea to look for scholarships. A lot of universities have a fund set aside to aid deserving students.
If you’re lucky, you could get a fully paid scholarship. But even a scholarship that takes care of your tuition fees is good enough. That will decrease the load on your Education Loan.
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Pick An Affordable University
A lot of colleges these days are only about the frills and fancies. They have exorbitant rates and unnecessary things they want you to pay for. So, before you choose, you should be sure that the college focuses mainly on the education and isn’t one that is too pricey because this will affect your student loan amount.
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Check For Grants Or Any Other Concessions
A good number of colleges are funded by the government and other institutions. In such cases, the college is often given subsidised grants for various courses. You can look for colleges that offer such courses, as it can really help you save some money.
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Look For A Part-Time Job On Campus
If you wish to start repaying your student loan as soon as possible, it will definitely help if you can find a part-time job while you’re on campus. This way you can make some money and save some to pay off your loan. Besides, your part-time job can also make it into your resume as experience. So, it’s a double bonus!
Additional Reading: 5 Popular Education Loans In India
After Taking A Student Loan
There are a number of things you can do to expedite your repayment on your student loan. A lot of student loans let you start repaying the EMI (Equated Monthly Instalment) once you find a job after college. So, here are a few things you can do once you begin working.
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Start Saving Your Monthly Salary
The simplest thing you can do while you start earning is by not spending your entire salary. Start saving your monthly salary. You can opt for a smart Savings Scheme or simply put the money into a Fixed Deposit.
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Set Up A Standing Instruction For Savings
If you’re unsure of being disciplined about saving, then we suggest that you put a check in place to ensure it happens consistently. For starters, you can get a standing instruction set up on your salary account to deduct a certain amount and move it into a Savings Account. This way, you don’t have to worry about overspending and not being able to pay back your Education Loan.
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Prioritise The Loan
It is very easy to get carried away when you land your first job. Getting a monthly pay check can be exhilarating to the extent that you feel tempted to buy everything you lay your eyes on. But, you’ve got to prioritise and work towards repaying all your debts before you start splurging.
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Make An Investment
Experts believe that it’s never too early to start investing. Did you know that Warren Buffet made his first investment at age 11, and he wished he did it earlier? So, get acquainted with smart investing options like Mutual Funds or ELSS and get the ball rolling. Earnings on investments are usually much higher than the interest you’ll earn in a bank account. You can then use this income to pay off your student loan.
Additional Reading: Education Loan Moratorium Period: Why It Matters
An Education Loan isn’t so tough to pay after all. With these few tips, you can easily ensure that your loan is repaid. Defaulting on any of your loans can affect your Credit Score drastically. Get your FREE Experian Credit Score in under 3 minutes. Don’t believe us? Check for yourself.