5 Steps to Manage Your Student Loan Debt

In the United States, students have on average $37,584 of debt related to student loans. By the end of 2020, a total of $1.57 trillion in outstanding student loan debt was recorded in the country. More than half of all students who attend college have some type of student loan that they need to repay.

Loans are an essential factor for many students who want to attend college or university. With a loan, students are able to pay for their class fees, rent a room in the dormitory, and obtain essential items needed to study. Proper management of your student loan debt can help you avoid falling into too much debt and makes the repayment process easier.

1.  Set Up A Spreadsheet

Having a full overview of all your debt on one document can be very helpful. Consider setting up a spreadsheet that gives you the total amount owed to each financial institution, the terms you agreed to, and the total payments you need to make every month. Make sure you frequently update the spreadsheet as you pay your bills. This ensures you have an easy view of your debt.

2. Understand Grace Periods

The majority of student loans will come with a grace period. For example, a federal student loan generally gives you a six-month grace period. Take advantage of this grace period. Once you graduate, make sure you get a job and achieve the right financial state to start paying back the loan once the grace period expires.

3. Avoid Missing Payments

When you miss a payment, then you may become the victim of lawsuits. In addition to legal action, late payment fees will also be added to your account. This can significantly increase the total amount that you will be paying at the end of the day. When you want to manage your student debt effectively, try not to skip out on any payment.

4. Push Extra Cash into Higher Interest Loans

Many students need to take out multiple loans to get them through college. Once you start paying back, see if you can push a bit more into your loans than the terms state. If you need to pay back a total of $250 every month, consider budgeting for $300. The extra cash should then be paid toward the loan that has the highest interest rate.

5. Consider Automatic Payments

Another useful tip is to set up automatic payments with the loan provider. Some institutes will give you a discount on the repayment amount or a lower interest rate if you agree to this, which also helps you save in the long run.


With over $1.5 trillion in student debt outstanding in the United States, it is obvious that loans are commonly used to help young adults get through college. Once taken out, the loans need to be repaid, which can be tough for a student who does not efficiently manage their finances in college and debt. Follow the steps we shared to help you be in control.

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