Paying Off Student Loans
4 Smart Strategies That Work
Higher education is often the bridge between dreams and
reality -but crossing that bridge can be expensive. Student loans make higher
education possible for many, but they also bring along the challenge of
repayment. In a busy tier-2 town, three friends -Sameer, Sudhakar, and
Shivanand, graduate with student loans and step into the working world. Each
comes from a very different background. But surprisingly, it’s Shivanand, the
one with the least resources, who manages to pay off his loan first.
Meet the Friends
Sameer comes from a well-off family.
His father owns a successful textile dealership. He took a student loan more
for financial discipline, knowing that family support was always available.
Sudhakar comes from a stable middle-class
home. His father teaches in a government school, and his mother contributes to
the family income through a home-run tiffin service. Loan repayment is a shared
family effort.
Shivanand was raised in a financially
struggling household. His father works as a daily wage labourer, and his mother
does domestic chores in nearby homes. His student loan was his only route to a
better future, and he knew that failure to repay it wasn’t an option.
Though all three were equally good in their academics, Shivanand
went the extra mile during college -researching scholarship opportunities,
applying meticulously, and participating in competitive exams and aid programs.
Thanks to his efforts, he secured a partial scholarship that covered a major portion
of his tuition. This reduced his loan burden to a reasonable extent and made
repayment more manageable after graduation.
After completing their studies, all three friends find jobs.
While Sameer enjoys his lifestyle, and Sudhakar balances his expenses
cautiously, it is Shivanand who makes the most remarkable progress, becoming
debt-free in just a few years. Here’s how he did it.
1. Start Repaying While Studying
During college, Shivanand worked evenings tutoring school
kids, freelancing online, and delivering food on weekends. Instead of waiting
to graduate, he began paying off interest portions of his loan early, which
reduced the total cost and prevented accumulation.
Lesson: Early action, even in small
amounts, makes a big difference.
2. Live Below Your Means
While Sameer upgraded his gadgets and Sudhakar rented a modest
single-room flat, Shivanand chose to share a small room with two others. He
used public transport, cooked his meals, and avoided unnecessary expenses.
Lesson: Living simply early on can buy
you financial freedom sooner.
3. Automate Loan Payments
Shivanand set up an automatic monthly EMI deduction the day
his salary got credited. He treated it like rent, non-negotiable. This
prevented missed payments and ensured that he never fell behind.
Lesson: Automation builds consistency
and keeps you on track.
4. Use Bonuses & Side Income Strategically
When Shivanand received his first bonus, he resisted the urge
to splurge. Instead, he made a lump-sum prepayment towards his loan. He also
continued weekend freelancing, directing all extra income straight toward loan
reduction.
Lesson: Channel every rupee of extra
income to cut down your loan tenure.
Today, Sameer and Sudhakar are still working through their
EMIs. Shivanand, however, is debt-free and saving aggressively for his next big
milestone, buying a modest home for his family.
To sum up, student loans don’t need to weigh you down for
years. With focus, early planning, and smart choices, you can clear your debt
faster than expected, no matter where you start from.
The content made available in this article is for general informational purposes only. While every effort has been made to ensure the accuracy and completeness of the content, it should not be considered as a substitute for professional consultation.
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