Smart Tips for Paying Off Loans While in School

Managing student loans while you’re still in school might seem challenging, but a few smart steps can make a big difference over time. Whether you’re trying to reduce future debt or gain peace of mind, here are some helpful tips to start paying off your loans even before graduation.

1. Understand Your Loan Details

Before making any payments, get to know the type of loans you have:

• Are they federal or private?

• Do they accrue interest while you’re in school?

• What are the repayment terms?

Knowing these facts can help you prioritize which loans to pay off first.

2. Start with Interest Payments

Even if you can’t afford to pay down the principal, covering the interest that builds up while you’re in school can prevent your loan balance from growing. This is especially useful for unsubsidized federal loans and most private loans.

3. Budget for Small Payments

You don’t need to make huge payments to make an impact. Try setting aside a small amount each month—even $25 or $50 helps! Creating a simple student budget with a loan payment category can get you started.

4. Get a Part-Time Job or Side Gig

Working a few hours a week can help you earn money specifically for loan payments. Look for flexible campus jobs, tutoring opportunities, or freelance work that fits your schedule.

5. Use Financial Gifts or Extra Funds

Got a birthday gift, scholarship refund, or tax return? Consider using part of it toward your loans. It’s a great way to make extra progress without affecting your regular budget.

6. Automate Your Payments

If you’re making regular payments, set them up automatically. Some lenders even offer interest rate discounts for enrolling in auto-pay—saving you money in the long run.

7. Apply for Interest-Free or Subsidized Help

Some schools or states offer programs that cover interest for students who meet certain criteria. Talk to your financial aid office to see if any options are available to you.

8. Stay Informed and Ask for Help

Financial literacy is key. Attend financial workshops, ask questions, and read up on loan terms. The more you understand, the more confident you’ll feel managing your loans.

Final Thoughts 💬

Paying off student loans while in school doesn’t have to be overwhelming. With the right mindset and small, consistent steps, you can reduce your debt and ease future financial stress. Remember, every dollar counts—and your future self will thank you!