Should I Repay My Student Loan While I'm Still In College?

Close up of Abraham Lincoln in 5 dollar bill.

Student loans have a variety of repayment plans. Many student borrowers opt to utilize the grace period—a six month period after graduation where they don’t have to make monthly payments on their student loan debt. However, there is an option to start repaying the student loan back as soon as you take it out. But is that the best option for you?

Benefits of Repaying Loans Early

There are two major benefits to starting your loan repayments ASAP. 1) You pay off the loan sooner and 2) You end up paying less by way of accruing interest. This gives you a head start on paying off your loan and focusing on other things instead.

The Financial Balance

Of course, you took the loan out to pay for tuition in the first place because you didn’t have enough money to cover the cost in full. In order to start repaying the loans, you have to have a source of stable income, which typically means having a part-time job while in school. Many students do this, but it can be tricky balancing the time between work and study. Additionally, there are other costs to manage—like general college fees, food, clothes, and other spending habits. Making loan payments on top of all that is a challenge, but one that can be well worth the effort.

So Should I Start Repayments in School?

This question is entirely dependent on your personal situation. A student with good grades, a steady paycheck, and who’s on track for graduation might find that repaying early is extremely beneficial. But a student with an overloaded schedule and tough classes may find that the grace period is just what they need to get their feet under them.

Rates (APR)	Eligibility
5.50%-16.12%* Variable 3.99%-15.61%* Fixed	Undergraduate and Graduate	VISIT CITIZENS
5.54% - 15.70% Variable 3.99% - 15.49% Fixed	Undergraduate and Graduate	VISIT SALLIE MAE
4.63% - 17.99% Variable 3.49% - 17.99% Fixed	Undergraduate and Graduate	VISIT CREDIBLE
6.00% - 13.75% Variable 3.99% - 13.75% Fixed	Undergraduate and Graduate	VISIT LENDKEY
5.66% - 14.72% Variable 3.69% - 14.56% Fixed	Undergraduate and Graduate	VISIT ASCENT
3.70% - 8.75% Fixed	Undergraduate and Graduate	VISIT ISL
5.62% - 16.85% Variable 3.69% - 16.49% Fixed	Undergraduate and Graduate	VISIT EARNEST
5.00% - 14.22% Variable 3.69% - 14.22% Fixed	Undergraduate and Graduate	VISIT ELFI

College Raptor is not a loan lender and does not assume responsibility for suggesting a loan to a user who may not be eligible for it. Rates, terms, conditions, eligibility, approval, and other considerations are the decisions of the lenders and may vary depending on which lender or marketplace the user selects. We urge users to carefully consider and review all loan options and terms before committing to taking out a loan.