Should I Repay My Student Loan As Quickly As Possible?

Student loans can often prove to be a burden, as you may end up making payments for a significant part of your adult life just to pay it off. Thus, you must carefully evaluate your earnings and understand the time you will take to make the repayments.

Sometimes, you can take steps to pay off your loan quickly and reduce your credit burden. However, the question remains: should you repay your student loan as quickly as possible, and what are the pros and cons of doing so?

Here are a few essential factors that will help you make the right financial decision.

1. Evaluate if the debt is affecting you adversely

Before you start looking up a list of moneylenders who can help you repay your debt, you should evaluate if the loan is affecting you adversely. It is essential to always check if repaying the loan will increase your penalties. Strange as it might sound, being timely in your payments over a long period of time can be more beneficial for your credit record than defaulting a few payments on a loan you repaid quickly.

Thus, you could consider sticking to paying small amounts regularly, rather than making an early repayment. Oftentimes small debts are not as significant a deal as it is made out to be. Before you start worrying about repaying your student loan at the earliest date, you should evaluate whether if it has affected your lifestyle adversely, and consider paying it off in full.

2. Check how much you would need to pay in total

Many individuals are often quick to take out a short term loan or opt for a payday loan to pay off their student loan. This may not be a wise decision, especially in the long run. For instance, the interest fees you incur from your short term loan may end up being more than what you would pay on your education loan.

Thus, it is crucial to sit down and check the numbers remaining on your student loan. Evaluate how long it will take for you to repay the loan entirely, and check the total amount of money you will have to pay in both interest and principal. You should calculate the cumulative total before you start applying for other loans to pay off your student loan.

When you have evaluated all of the above details, you will have a clearer idea of whether you should consider taking out another loan to pay off your student loan.


While we all wish to be free of debt, repaying loan quickly may not always be the most ideal option. If you are able to find a loan with a lower interest rate to pay off your student loans, by all means, take it to repay your student loan. However, in other cases, a quick student loan repayment may not be wise. By spreading out your student loan payments, you can ensure that you will not be stretched too thin financially. This can be essential as you may not have plenty of income to your name after you are fresh out of school.

Thus, rather than getting overzealous in repaying your student loan, save up the extra funds that you will have after each loan repayment and prioritise your future finances accordingly.

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