Credible
Get Rates
  • Refinance Student Loans
    • Compare Options
      • Best Refinancing Companies
      • Lender Reviews
      • Refinance Student Loans
      • Student Loan Consolidation
    • Learn the Basics
      • Fixed vs. Variable Rates
      • Forgiveness Programs
      • Consolidation vs Refinancing
      • Repayment Plans
      • More on Student Refi
    • How to
      • Consolidate Your Student Loans
      • Pay Off Your Student Loans
      • Lower Your Interest Rate
    • Tools
      • Current Student Loan Refi Rates
      • Refinancing Calculator
      • Repayment Calculator
      • Student Loan Score Calculator
  • Student Loans
    • Compare Options
      • Private Student Loans
      • Parent Student Loans
      • Law School Loans
      • Medical School Loans
      • Graduate Student Loans
    • Learn the Basics
      • Student Loan Limits
      • Living Expenses
      • Applying for FAFSA
      • Federal Student Loans
      • Student Loan Interest Rates
      • More on Student Loans
    • How To
      • Pay for College
      • Take Out Student Loans
      • Apply Without Cosigner
      • Apply for Student Loans
      • Pay for Grad School
    • Tools
      • Best Private Student Loans
      • Current Student Loan Rates
      • Student Loan Interest Calculator: Estimate Payments
      • Lender Reviews
  • Personal Loans
    • Compare Options
      • Best Personal Loan Lenders
      • Lender Reviews
      • Get Personal Loan Rates
    • Learn the Basics
      • How to Qualify
      • How to Get a Loan
      • Where to Get a Loan
      • Personal Loans with Cosigner
      • Pay Off Credit Card Debt
      • More on Personal Loans
    • Best for
      • Credit Card Consolidation
      • Debt Consolidation Loans
      • Home Improvement Loans
      • Good Credit
      • Fair Credit
      • Bad Credit
    • Tools
      • Current Personal Loan Rates
      • Personal Loan Calculator
  • Mortgages
    • Compare Options
      • Mortgage Refinance
      • Home Loan
      • Best Mortgage Refinance Companies
      • Best Mortgage Lenders
      • Mortgage Preapproval
      • Mortgage Payment Calculator
    • Compare Rates
      • Mortgage Refinance Rates
      • 30-Year Fixed Refinance Rates
      • 15-Year Fixed Refinance Rates
      • Home Loan Rates
      • 15-Year Fixed Mortgage Rates
      • 30-Year Fixed Mortgage Rates
    • Learn the Basics
      • How to Buy a House
      • How to Refinance Your Mortgage
      • How to Get the Best Rate
      • Cash-Out Refinancing
      • More on Home Loans and Refi
    • Pay Off Mortgage
      • Home Equity to Pay Off Debt
      • Paying Off Mortgage Early
      • Mortgage Refinance Cost
  • Insurance
    • Insurance Products
      • Insurance Products
      • Learn more about home insurance
    • Compare Options
      • Compare Insurance Quotes
      • Home Insurance Guide
    • Learn the Basics
      • What Home Insurance Covers
      • How Much Home Insurance You Need
      • Estimate Your Home Replacement Cost
      • How to Change Home Insurance
  • Company
    • About
    • Reviews
    • Blog
    • Lenders
    • Editorial Guidelines
    • FAQs
    • Press
  • Find My Rate
Advertiser Disclosure

Use Your Student Loans Wisely: Only Take Out What You Need

Jimmy Karnezis Jimmy Karnezis Edited by Ashley Harrison Updated October 8, 2021

Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. By refinancing your mortgage, total finance charges may be higher over the life of the loan.
Credible Operations, Inc. NMLS # 1681276, is referred to here as "Credible."

Once you are approved for your student loan, it can be easy to look at the loan as free money. If you already need to pay for your classes, you might as well use any extra money to “help” you succeed in school, right? Wrong! Using student loan money for everyday spending can land you with insurmountable debt after graduation.

Many students see college as their chance to immerse themselves in education and fun. They rely on student loans to fund their living expenses, wants, and needs while they focus full-time on school. They think in future terms when it comes to their student loans. The assumption is that it will be easy to pay for student loans when you have a top-paying job. However, many students find themselves with low-paying jobs after graduation, and too much debt.

Compare student loans offers from multiple, vetted lenders on Credible.
Find my rate

Why Students Shouldn’t Borrow More Than They Need

Student loans are much different than regular consumer credit. For one, there is no escaping student loans in financial hard times, especially since student loans will remain attached to you even after you file bankruptcy. If you do not pay your student loan debt, serious consequences can occur, such as getting your wages garnished, being sued, and losing out on tax refunds and federal benefits. Ultimately, you can also damage your credit if you do not keep up with student loan payments.

Student loans are not like low interest credit cards, and they should not be treated in the same way. Student loans are riskier and should only be used for school essentials.

How to Pay for Secondary Costs

The goal is to graduate with as little student debt as possible. However, you still have to live somewhere and eat, so how do you afford those costs? Here are some tips.

  • Cut Your Costs: You may want to live the life while going to college, but it is much better to live like a poor college student. Live with your parents or several roommates if you have to. If you live on campus, forgo a car and car insurance. Skip the pricy student meal plan and make your own simple meals.
  • Find Work: There are many part-time positions on campus, as well as off campus. Many businesses prefer to hire college students for odd hours or seasonal hours. Don’t be afraid to ask a college counselor for assistance for finding a work-study program.
  • Earn Creatively: Just because you cannot find a paying position does not mean you are out of luck for money. There are many side jobs you can do and offer to your fellow classmates. Try earning a little side money from tutoring, editing papers, or even cleaning the sorority and fraternity houses. Why not offer your skills of cooking or flyer making?

In the end, you want your student loan to cover your educational expenses, but don’t consider everything, like spring break vacation costs, an educational expense. Live like a poor college student now so that you don’t have to live like one after you graduate.

Keep reading: How to Pay for Greek Life: Sorority & Fraternity Costs

Home » All » Personal Finance » Use Your Student Loans Wisely: Only Take Out What You Need

We encourage you to provide honest and thorough feedback about your experience (not the experiences you’ve heard from other people), the good as well as the bad. But, we also want you to follow these content guidelines. The comments or responses that Credible posts under its official account are not provided, reviewed or endorsed by any of the financial institutions unless specifically stated otherwise in the response. Please keep in mind that the financial institution has no obligation to monitor any comments, questions or reviews you post and is therefore not responsible for ensuring your posts and/or questions are answered.

Leave a Reply

Your email address will not be published. Required fields are marked *

Student Loan Basics


  • How to Qualify for a Student Loan
  • When to Apply for a Student Loan
  • How to Apply for Student Loans
  • How to Apply for FAFSA

Choosing a Student Loan

  • Types of Student Loans
  • Federal vs. Private Student Loans
  • Subsidized vs. Unsubsidized Loans
  • Parent Plus Loans vs. Private Student Loans

Tools and Resources

  • Find a Private Student Loan
  • Best Private Student Loans
  • Average Cost of College
  • Current Student Loan Rates
  • Find a Student Loan Cosigner
  • Lender Reviews
  • Student Loan Calculator

  • Click to share on Facebook (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on Twitter (Opens in new window)
  • Click to email a link to a friend (Opens in new window)

Related Articles

Student Loans

Cosmetology School Student Loans and Financial Aid

Student Loans

What Is a Parent PLUS Loan?

Student Loans

8 Student Loans for an Engineering Degree

  • Read More
    • Refi Student Loans
    • In School Loans
    • Personal Loans
    • Mortgages
    • Insurance
  • Resources
    • Lender Reviews
    • Loan Calculators
    • Student Loan Score Calculator
    • Data Insights
    • Debt Statistics
    • Sitemap
  • Compare
    • Student Loan Refinance
      • Current Student Loan Refi Rates
    • Student Loan Consolidation
    • Private Student Loans
      • Current Student Loan Rates
    • Personal Loans
      • Current Personal Loan Rates
    • Refinance Mortgage
      • Mortgage Refinance Rates
        • 15-Year Fixed Refinance Rates
        • 30-Year Fixed Refinance Rates
    • Home Loans
      • Home Loan Rates
        • 15-Year Fixed Mortgage Rates
        • 30-Year Fixed Mortgage Rates
    • Insurance
  • Top Lenders
    • Best Student Loan Refi Companies
    • Best Private Student Loans
    • Best Personal Loans
    • Best Mortgage Lenders
    • Best Mortgage Refinance Companies
  • Company
    • About
    • Reviews
    • Blog
    • Editorial Staff
    • Editorial Guidelines
    • News
    • Press
  • Legal
    • Terms of Use
    • Privacy Policy

© 2022 Credible


Credible Operations, Inc. NMLS ID# 1681276 | NMLS Consumer Access | Licenses and Disclosures
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.