• Home
  • Progress With Us Articles
repay-education-loan-through-part-time-jobs
clock3 mins read
calenderJul 25, 2024

Smart strategies: Repay Education Loan with part-time jobs

Taking out an Education Loan is a common solution for funding higher education, but it comes with the responsibility of repayment. Many students and graduates face the daunting task of managing loan repayments alongside their academic or professional commitments. However, with the right approach and a part-time job, you may tackle your Education Loan effectively.

Benefits of part-time jobs


  • Financial support: Earning income helps cover your living expenses and contributes to your loan repayments.
  • Work experience: Gaining practical experience in your field of study can enhance your CV and improve future job prospects.
  • Time management: Balancing work and studies teaches you valuable time management skills, which are crucial in any career.

Strategies to repay your Education Loan through part-time jobs

1. Choose the right part-time job: Selecting a part-time job that aligns with your schedule and career goals is essential. Look for flexible roles that allow you to balance your studies and work effectively. Popular options include tutoring, freelance work, internships and on-campus jobs.

2. Budget wisely: Creating a budget is crucial when managing loan repayments. Track your income and expenses to ensure you're allocating enough funds towards your Education Loan. Consider using budgeting apps to simplify this process.

3. Prioritise loan repayments: When you receive income from your part-time job, prioritise your loan repayments. Set aside a fixed percentage of your earnings specifically for this purpose. This disciplined approach will help you stay on track and reduce your loan balance over time.

4. Explore repayment options: Many banks offer flexible repayment options to accommodate students' financial situations. For instance, some lenders allow you to pay only the interest during your study period and start repaying the principal amount after graduation. Research and choose the best option that suits your needs.

Tips for managing Education Loan interest rates

1. Refinance your loan: If you find a lender offering a lower interest rate, consider refinancing your Education Loan. This can reduce your monthly payments and the total interest paid over the loan term.

2. Make extra payments: Whenever possible, make extra payments towards your loan principal. This reduces the principal balance and, consequently, the interest amount over time.

3. Automate payments: Setting up automatic payments ensures you never miss a due date, which can help you avoid late fees and potential interest rate increases.

Also Read: Non-collateral Education Loan for Abroad Studies

Conclusion

Repaying your Education Loan through part-time jobs is a practical and achievable goal. Remember, every small step towards repayment brings you closer to financial freedom and a debt-free future.

Axis Bank offers Education Loans designed to support your academic aspirations, covering 100% of your educational expenses, including course fees, living expenses and travel costs. With features such as pre-admission sanction, maximum loan repayment tenure and tax benefits under Section 80(E), Axis Bank ensures a seamless financial journey for students. Additionally, you can plan your repayment easily using Axis Bank's Education Loan EMI Calculator.

Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.