Managing Student Loans While You Are Still in School

Student loans often feel like a future problem, something to worry about after graduation. While it is true that repayment usually begins later, the choices you make while still in school can have a major impact on how manageable your loans feel once that day arrives. Borrowers who take small, intentional steps before graduating often find themselves in a far stronger position than those who wait until the first bill shows up.

The first and most important habit is staying aware of how much you are borrowing. It is easy to lose track when loans are taken out semester after semester, especially when the money goes directly to the school. Checking your loan balance at least once or twice a year helps you understand the total cost you are accumulating. This awareness alone can influence decisions about housing, course loads, or whether additional borrowing is truly necessary.

Borrowing only what you need is one of the smartest moves you can make. If you receive a refund from your school because your loan amount exceeded your actual expenses, that money can usually be returned. Using student loan funds for nonessential spending may feel harmless in the moment, but it increases the balance you will carry for years. Being intentional about borrowing protects your future cash flow.

Understanding the type of loans you have is also critical. Federal loans come with protections and flexible options that private loans do not. Knowing whether your loans are subsidized or unsubsidized helps you understand how interest behaves while you are in school. Subsidized loans do not accrue interest during enrollment, while unsubsidized loans do. This difference matters when planning next steps.

For unsubsidized loans, paying interest while you are still in school can make a meaningful difference. Even small monthly interest payments prevent interest from piling up and being added to your balance later. You are not required to do this, but it is one of the most effective ways to reduce long term costs if you have the ability to do so.

Staying organized is another overlooked advantage. Keep copies of financial aid letters, loan disclosures, and correspondence from servicers. Make sure your contact information is always up to date so you do not miss important notices. Knowing who your loan servicer is before graduation helps avoid confusion during the transition into repayment.

Students can also prepare by learning how repayment works ahead of time. Understanding grace periods, repayment plans, and basic loan terminology removes a lot of anxiety later. Many borrowers feel overwhelmed simply because they are encountering these concepts for the first time under pressure. Familiarity creates confidence.

Building basic financial habits while in school also supports loan management later. Creating a simple budget, even on a small income, helps you understand spending patterns and priorities. Building a small emergency fund, even if it is modest, reduces reliance on credit cards and prepares you for early career transitions. These habits make it easier to absorb loan payments once they begin.

Credit awareness matters too. Paying bills on time, keeping credit card balances low, and avoiding unnecessary debt all help maintain a healthy credit profile. Strong credit can open options later, whether that involves housing, transportation, or refinancing decisions down the road.

Taking advantage of campus resources is another smart step. Financial aid offices, student support services, and career centers can provide guidance on borrowing, budgeting, and post-graduation planning. These resources are included in your tuition and are often underused.

Finally, think ahead about your career path and income expectations. While no one can predict the future perfectly, having a general sense of your earning potential helps frame borrowing decisions. Loans should support your education, not limit your flexibility after graduation.

Student loans do not become manageable by accident. They become manageable through early awareness, intentional choices, and small actions taken consistently over time. Starting while you are still in school gives you leverage. It allows you to graduate not only with a degree, but with clarity and control over one of the most important financial commitments you will make.

Write to Marck Berotte at mberotte@aglaosconsulting.com