How to Manage Student Loan Debt

(2025) The dream of a higher education shouldn't be overshadowed by the reality of student loans. It's true, many of us will face this financial hurdle, but feeling overwhelmed doesn’t have to be the result.  You can take control. This article empowers you with practical strategies to manage student debt, both before you enroll and long after graduation, turning potential anxiety into confident action.

Before College

1. Start Saving Early
   It’s never too early to begin saving. Whether it’s from part-time jobs, gifts, or other sources, putting money aside now can help cover future college costs and reduce the amount you need to borrow later.
2. Focus on Your Grades
   Good grades in high school can open doors to scholarships, which can help pay for college. Some schools even allow you to earn college credits while you’re still in high school, helping you save on tuition costs later.
3. Research Scholarships
   Take time to research and apply for as many scholarships as possible. Your high school counselors and online scholarship databases are great resources to help you find opportunities.
4. Choose the Right College
   Think carefully about which colleges are affordable for you. Community colleges are a great option for the first two years of college, and you can transfer to a four-year school afterward to finish your degree.
5. Technical Colleges Offer Great Careers
   Technical colleges provide focused, hands-on training for in-demand careers, often leading to quicker entry into the workforce. This means you can start earning a good income sooner, which can significantly reduce the need for extensive student loans.
6. An Apprenticeship May be an Option
   Apprenticeships offer a unique blend of on-the-job training and classroom learning, where you earn while you learn. If the career you seek offers an apprenticeship, it could minimize or eliminate the need for traditional student loans, because you’ll be gaining valuable skills and earning a paycheck at the same time!

Junior Achievement’s JA Afford Your Future website offers a career interest inventory assessment tool that will match your interests and talents with careers, and its Dream Big, Plan Smart Options Calculator shows how different choices (career, educational venues, and funding options) can affect your wallet.  Whether you opt for a traditional four-year college, a technical college, or an apprenticeship, planning ahead is key. 

But, let’s say you’re in college or just graduated? Now what?

During & After College

1. Create a Budget
   Building a budget and sticking to it is key to managing your finances. Track your spending and focus on the things that are most important—like paying your bills and saving for the future.
2. Use Credit Cards Wisely
   Credit cards can be helpful, but they can also lead to more debt. Avoid them if you can. But if you have to use them, be careful not to use them excessively, and always try to pay off your total balance every month.
3. Consider a Part-Time Job
   If you’re still in school, consider working part-time. It can help you cover living expenses and lessen the amount you need to borrow.
4. Find Affordable Textbooks
   New textbooks are expensive. Consider used. Most schools will have them, but you’ll have to act fast because they are a hot commodity. An online search could prove fruitful. There may be digital versions or rental options that could save you money as well.
5. Pay More Than the Minimum
   If you can, try to make extra payments on your loans to reduce the interest that builds up over time. Even small extra payments, $20, can make a big difference in the long run.
6. Look into Loan Forgiveness Programs
   If you’re working in a public service job, teaching, or in the non-profit sector, you may be eligible for loan forgiveness programs. It’s worth researching to see if you qualify.
7. Need to claim a Financial Hardship?
   Contact your creditor. You can call, write to or email the creditor letting them know you cannot afford your repayments and that you want to make a repayment arrangement. If possible, contact your creditor’s hardship department. (This is called a hardship notice.) You can ask for any type of repayment arrangement as long as it will reasonably repay the loan. So, you’ll need to work out what you can actually afford to pay by doing a simple budget.

How Prevail Bank Can Help

At Prevail Bank, we understand the challenges of managing debt, and we’re here to help. We offer a variety of resources to support you in reaching your financial goals:

1. Saving Makes Cents
   Customers with a Prevail Bank checking account, savings account, and debit card can save money while making regular purchases. This program, Saving Makes Cents, rounds up your purchases to the next whole dollar, and transfers the change to your Savings account.
2. Simply Free Checking
   At Prevail Bank, we believe saving money should be simple --- and that includes our checking accounts --- No monthly minimums or service fees. We have a special Simply Free Checking for minors (ages 14-17) too! 
3. Digital Banking Alerts
   Our mobile banking app offers personalized money management insights, real-time alerts to help you stay within your budget, and a bunch of other benefits.
4. Credit Sense
   Prevail Bank offers Credit Sense to its customer as a free service. Credit Sense helps you build a better credit score, analyze your spending habits, and provides helpful educational tools to improve your financial management.
5. Budget & Money Management Blogs
   Budgeting is all about choices and it’s important to be realistic.  Our Adulting 101 blog provides you with steps to setting up a budget. Survive Winter provides tips you could incorporate all year round to help you save money, and Your Dad’s Guide is a list of money managing habits and words of advice that have been passed down throughout the ages.

Adulting 101: Budget, Bank, Credit

Survive Winter & the Holidays with our Helpful Savings Tips

Your Dad’s Guide to Financial Savviness: Timeless Wisdom

Managing student loan debt can be a challenge, but with the right tools and support, you can stay on track. Prevail Bank is here to help you navigate this important step toward financial stability. Let us help you.  ---- Member FDIC.