Education Loan Repayment: Tips to Pay Student Loan Faster
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if you're going to borrow a student loan to study abroad, you should learn the tips to make study loan repayment faster. Without guidance and no planning for loan repayment will push you towards debt and you'll find your education loan more expensive.
How to pay Education loan faster? What are the hacks to be student loan debt-free early? Education loans are a boon for students facing financial issues to fund their studies. Today, taking a student loan for studying abroad or in India is easy. Students face a major challenge at the time of education loan repayment. When a student starts working abroad, they juggle managing living expenses while also paying off their student loan.
Banks start charging interest on the loan amount after one year of completing your course. Note that, for a loan with a longer tenure you need to pay an extra interest amount. However, you can save thousands, even lakhs, of rupees by paying a loan faster. In this blog, we are going to tell you the Education Loan Repayment tips.
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- 10 Tips to Pay Education Loan Faster
- 1. Choose the Best EMI Plan
- 2. Pay More Than Your EMI
- 3. Education Loan With Low Tenure
- 4. Refinance Your Loan
- 5. Earn While You Learn
- 6. Apply For a Scholarship
- 7. Choose the Auto Pay Option
- 8. Stick to Your Budget
- 9. Apply for Income-Based Education Loan Repayment
- 10. No Extra Loan During Student Loan Repayment
- Government Schemes
- Ask Your Employer to Help
10 Tips to Pay Education Loan Faster
A good education is the only way to fulfil your dreams. Students borrow loans from Banks and NBFCs to fund their studies, but without planning your desired degree can turn out to be expensive. Later, students just want to get rid of this anyhow.
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Visa applicationHere are some tips that can help you to make education loan repayment quickly. Due to this, you can be debt-free in your early career days. Check out the tips.
- Choose the Best EMI Plan
- Pay More Than Your EMI
- Take a Loan with Low Tenure
- Refinance Your Loan (If you have a good credit score)
- Generate Money While Studying (Part-Time Work Option)
- Apply for Scholarships
- Choose Autopay Option
- Stick to the budget
- Apply for Income-Based Repayment
- Do Not Take Extra Loan During Student Loan
1. Choose the Best EMI Plan
Here, choosing the best EMI Plan means, you select the plan that suits your pocket. Paying more than your budget can push you towards financial problems. Also, it is possible that you may miss an EMI and the bank will put penalty charges for this. That’s why it is suggested to select the EMI according to you for education loan repayment. Use the education loan calculator to compare your loan
For example: If your ROI (Salary) is 1 Lakh per month then try to pay at least 30% of your salary.
2. Pay More Than Your EMI
How Can I pay student loan faster? The easy answer is to pay more than your EMI. When you more than your EMI then the extra amount you pay reduces your principal amount. The low total amount is equal to a lower interest amount.
If you get a high-paying job or you get extra money, pay again your education loan. These small amounts can reduce your total principal amount significantly.
For Example- You got promoted and now your salary is INR 2 lakhs per month. Your EMI is INR 30,000. Apart from paying EMI, you can pay 10 or 20 thousand extra to reduce the total amount.
3. Education Loan With Low Tenure
The best strategy for making education loan repayments early is to borrow a loan with a low term. The con of such loans is the need for larger monthly payments. While the benefit is you will save a lot of money in interest paid towards your loan. You can see the difference in the image below:
4. Refinance Your Loan
After completing your graduation and getting a job, you can consider refinancing your loan. Explore loan options by other money lenders and choose the refinancing of your education loan with a low-interest rate. With a better credit score and a job, the chance of getting a loan at a low interest rate is high.
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5. Earn While You Learn
You took an education loan which shows you are facing financial hardship for higher studies. Naturally, you will do part-time jobs (On campus/ off campus) or online freelance work. This will help you to cover the cost of living while studying abroad. Try to save some money that you get working part-time and pay the education loan.
The amount you will pay here will reduce your total amount. So, you need to pay less interest amount on a reduced principal amount.
6. Apply For a Scholarship
Top universities in the world and some countries offer scholarships to international students. To maximize your chances of receiving financial aid, explore these scholarship options and apply early. Remember, some scholarships are awarded on a first-come, first-served basis. If you apply early, there is a high chance that you get a fully-funded scholarship. Receiving a scholarship can help you reduce the amount you need to borrow through an education loan, or potentially even repay your loan entirely.
Related Read: How to Apply for Scholarships?
7. Choose the Auto Pay Option
Many banks offer an “Auto-Pay” option. This benefit allows you to avoid manually repaying your education loan. Instead, the bank system automatically debits the EMI amount from your bank account. To ensure a smooth transaction, keep a sufficient budget in your bank account at the time of EMI deduction.
8. Stick to Your Budget
This tip is one of the best ways to Save Money as a Student While Studying Abroad. Make a monthly budget and follow it strictly. It will stop you from overspending on anything. Ultimately, you will save money and you can either repay your study loan or you can use it in a different way.
There is a rule called 50/30/20 rule. According to this rule, use 50% of your income for necessities, 30% of your income for your wants and 20% of your income for savings.
9. Apply for Income-Based Education Loan Repayment
Income-based education loan repayment is a rare feature in India. The Income-based study loan repayment feature adjusts your monthly payment (EMI) based on your salary. For example, if your salary drops from ₹1 lakh to ₹50,000, the EMI would be adjusted to reflect your lower income. As mentioned, not all the banks offer this feature, so you need to do a research for this.
10. No Extra Loan During Student Loan Repayment
Take no extra loan until you pay the last EMI of your study loan repayment. This is a common mistake many students make. They start working, receive their salary, and begin spending on wants like cars, gadgets, or even homes. This is a financial blunder that can lead to significant hardship down the road.
Government Schemes
Other than the above-mentioned tips, you can choose to take the help of government education loan schemes. The central government is running the Central Sector Interest Subsidy (CSIS) scheme. This is a government scheme you should know if you are going to apply for a student loan.
Central Sector Interest Subsidy (CSIS) Scheme
The CSIS scheme is an initiative taken by the Government of India to ease the financial burden of education loan repayment from students in India. Under this scheme, eligible students will get an interest subsidy on the education loan up to 10 lakhs. However, this is only for studying in India and not for studying abroad.
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Ask Your Employer to Help
Several employers in the world offer loans to their workers. You can ask your employer to help for education loan repayment. The benefit of borrowing this loan is that you can get it at a lower interest rate. Also, the EMI for this loan will automatically be deducted from your monthly salary. That’s how you can pay your student loan faster.
This is all about how you can repay your education loan quickly and become debt-free. If you have any queries, feel free to ask, and we will be happy to answer. You can either drop your query in the comment box below or connect with Shiksha Study Abroad Counsellors.
Yes, all the graduates receive a British degree irrespective of the campus locations. Programs follow similar patterns and examinations on all campuses. The degree awarded is even recognised by the reputed institutions and also approved by Royal Charter in UK.
The University of Hertfordshire has a 70% acceptance rate, making it easy to get into and having simple admissions requirements. Academic achievement, English language proficiency, references, and many other factors are taken into consideration while making the selection. At Hertfordshire, some programs may require four to five years of experience. To enroll in any programme at Hertfordshire University, students must meet the qualifying requirements. In addition, students with average performance can showcase their relevant experience or extracurricular activities participation to increase their selection probability.
According to an unofficial source, NTU has been placed at #1 in the UK for employability. In addition to this, as per the details available on the web, some of the top companies where NTU UK alumni work are Deloitte, Microsoft, Tesco, Turner & Townsend, The Access Group, etc. Some of the industries where the alumni work are Operations, Business Development, Arts and Design, Sales, Marketing, IT, Engineering, Finance, Media & Communication, etc.
The English language test score required at the Univerisyt of South Wales are mentioned in the table below for the international applicants whose first language is not English
Exam | Minimum Scores |
|---|---|
IELTS | 6.0 with at least 5.5 in each band |
TOEFL | 72 overall and a minimum of 18 in reading, 17 in listening, 20 in speaking and 17 in writing |
PTE | a score of 59 overall and 59 in each component. |
England Newcastle University is one of the top choices among international students due to the university's world-class programs, an impressive return on investment, vibrant campus life, and more. As per the reviews posted by students on Shiksha, the university has obtained the following stars:
| Parameters | Stars (Shiksha Reviews) |
|---|---|
| Overall | 3.7 |
| Public Transportation | 4.5 |
| Safety | 4.4 |
| Quality of Faculty | 4.4 |
| Student Life | 4.1 |
| Value for Money | 3.6 |
| Indian Food | 3.4 |
| Permanent Immigration | 3.4 |
| Post-study Jobs | 3.4 |
| Part-time Work | 3.3 |
| Internships | 3.0 |
With a 70% acceptance rate, the University of Hertfordshire is not hard to get into and follows easy selection criteria during admissions. This does not mean the university accepts all the students applying for different programs. The selection is based on academic performance, English language requirements, references, and many more. Some of the programs at Hertfordshire even demand an experience of 4-5 years. Students must fulfill the eligibility criteria to enroll in any programme at Hertfordshire University. In addition, students with average performance can showcase their relevant experience or extracurricular activities participation to increase their selection probability.
The University of Kent ranking in the UK is among the Top 100 Universities. Also, in UK, this university ranks at #60 in the Guardian rankings and #51 as per The Complete University Guide rankings 2025. In comparison to the rankings of the previous years, this university's position has slightly declines in the UK rankings.
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International students whose native language is not English must meet the University of Essex English language requirements to get admission. The university accepts IELTS scores as proof of English language proficiency. Mentioned below are the IELTS scores required for UG and PG admission at the university:
English Language Test
Score
IELTS
Overall score of 5.5 to 8.0 with minimum of 5.5 to 7.5 in each section
The university also accepts the score of other English language tests such as TOEFL and PTE for admission to undergraduate and graduate programs:
English Language Test
Score
TOEFL iBT
Overall score of 72 to 114
PTE
Overall score of 59 to 84 with minimum of 59 to 80 in each section
Also read: Required IELTS Score for UK Universities