How To Wisely Manage Your Study Loans As A Student

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Education is an investment that will pay off in the long run, and that certificate from the university of your dreams has never been more valuable. However, education is also costly, which is why many students consider taking up a personal loan from a legal money lender in Singapore.

Loans come with interest, and the longer you take to pay off your loans, the more they will add up in the long run. It is hence wiser to pay off your loans as quickly as possible to save as much money as you can. But if you are not sure how to go about it, here is how you can better manage your study loans as a student without snowballing debt in the future.

1. Work smart, not hard

Many students choose to do a part-time job to earn extra money to pay off their loans, whether it be over the holidays, weekends, or on the days when they have fewer classes. Not only does the part-time job help with expenses, but it also allows them to gain valuable working experience.

When picking a job, work smarter and not harder! Some students jump into the first job offer they can find and settle with it, and they do not consider finding a job that provides higher salaries and greater benefits. When choosing a job, pick one that offers higher hourly rates and consider the location and your daily expenses while at work. These costs can eventually add up and may not be as ideal as you think.

The goal is to find the perfect balance between minimising your expenses and maximising the money that comes in without overloading yourself, such as tutoring or freelancing from home instead.

2. Prioritise paying off your student loans early

Paying off study loans will not be the only expense you have to consider when calculating your monthly budget. You also have to account for other costs such as food and transport, and even utilities and housing if you are moving out to live independently. Adulthood comes with many responsibilities, and paying off your student loans may easily become less of a priority.

At the same time, student loan debt easily accumulates, and interest rates would mean your loans will quickly snowball and grow over time. As you take a longer time to pay off the principal interest, you will be charged more in the future when you could have saved money by paying off your loans earlier. Hence, start saving now and work towards paying off your student loans while interest is low to avoid accruing interest.

3. Channel your money into additional payments

Consider your needs and wants; are these purchases being used for short-term gratification or something more long-term like clearing off your debt? The interest of your loan actually compounds over time, meaning the remaining amount you have to pay every month will also grow over time.

You might want to forego a material good now to save a sum of money that you can enjoy in the future. Instead of delaying your study loan payments, make a clear budget and ensure that you do not spend excessively on unnecessary expenditures to liberate yourself financially in the future!

4. Choose your loan wisely

After you have carefully considered all your options, such as the different financial assistance schemes offered by the school or government agencies, do your research and compare the different rates across various financial institutions and licensed moneylenders.

While many banks offer student loans at rates around 4.3% to 4.7%, any licensed moneylender in Singapore is legally required to cap their interest rate at a maximum of 4%, regardless of the borrower’s income or type of loan.

Just a few decimals can make a major difference in the long run, and licensed moneylenders may offer loans at more competitive rates than many other financial institutions, allowing you to save more money in the process of repaying your loans.


As a student, your study debt may be one of your biggest financial concerns, but smart choices now and in the future will allow you to repay your loans in the shortest amount of time possible. Making mature and educated financial choices in the present will reduce your worries and concerns, allowing you to become financially independent in the future.

If you are a student unsure of your next financial decision, consider Goldstar Credit, where we will be able to assist you in times of financial difficulties and confusion with our friendly service. Our flexible repayment schemes are also priced at highly affordable rates. As a licensed moneylender in Hougang and Toa Payoh, our physical branches are easily accessible – to learn more about your options, do not hesitate to give us a call at +65 6384 0088 today!


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