Top Tips On How To Wisely Manage Your Study Loan As A Student


Table of Contents

Table of Contents

Pink ceramic pig figurine with a black graduate cap on top of notebooks indicating higher education and study loans

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 study loan from a bank or 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’s how you can better manage your study loans as a student without snowballing debt in the future.

Top Ways To Manage Your Study Loans As A Student

1. Choose your study 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 money lenders.

Banks generally offer lower interest rates, making them a popular choice for students. However, bank loans may require a co-signer or collateral, and the application process can be lengthy and require a good credit score. On the other hand, licensed money lenders offer faster loan processing times and are often more flexible with their requirements. However, they often have higher interest rates.

It’s important to carefully consider the terms and conditions of each loan option, and ensure that the chosen loan is affordable and fits within your budget.

On top of that, it’s important to only borrow what is necessary to cover education expenses and avoid taking on too much debt that could impact your long-term financial goals.

2. 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 online tutoring or freelancing from home instead.

3. 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 to keep interest accrual to a minimum.

4. Evaluate your spending habit and start budgeting

Budgeting is an important skill for managing finances and achieving long-term financial goals. One key aspect of budgeting is understanding the difference between needs and wants, which can help prioritise spending and reduce unnecessary expenses. This is particularly important when trying to pay off student loans quickly, as every dollar saved can be put towards clearing off the debt.

By creating a budget and identifying areas where expenses can be reduced, such as dining out or entertainment, you can redirect those funds towards paying off your student loans.

Additionally, having a budget can help prevent overspending and ensure that there is enough money to cover essential expenses. Instead of delaying your study loan payments, make a clear budget plan and ensure that you do not spend excessively on unnecessary things to liberate yourself financially sooner in the future.


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.

Goldstar Credit is here to help students navigate the complexities of study loans with friendly, reliable guidance. Our flexible repayment schemes and affordable rates provide the best possible solutions to help you achieve your financial goals. Contact us today to learn more.


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