Managing Debt

Student Loans Are ‘Good Debt’, Until Payment’s Due. Here’s How To Tackle It.

I am a fresh graduate, and I am currently paying for my student loan. It takes a sum out of my salary. But I know that not all debts are bad. The loan helped me fund my studies, and in return I was able to be employed. Student loans are often called the golden ticket to a brighter future. Other “good” loans include home loans to buy a housewhile business capital loans are for funding business growth.In theory, student loans are considered “good debt” because they help fund a university education, which is expected to lead to better job prospects and higher income. In Singapore, there are government schemes like the Tuition Fee Loan (TFL) or the CPF Education Scheme, both with low interest rates and deferred payments. In Malaysia, PTPTN loans charge just 1% interest for local students. This sounds manageable, right?But with rising living costs, a more competitive job market, and growing repayment stress, paying back on time can easily start to feel like a burden.According to Pew Research, many borrowers feel overwhelmed because:They struggle to understand loan terms from the startThey aren’t sure how to choose or adjust their repayment plansThey get trapped in cycles of interest accrual and deferments, with balances that never seem to shrinkFor those who are still exploring for student loansDon’t automatically take the maximum loan amount. Instead, calculate what you truly need, factoring in tuition, living costs, and any part-time income you can earn. One of the best ways to reduce future debt stress is by choosing a school with strong return on investment (ROI), that means lower tuition fees, high graduation rates, and solid job prospects.Also, don’t skip the search for scholarships, grants, or paid internships. A bit of effort now can save you from years of debt later.For those who are currently studyingLiving frugally is key. Track your expenses and resist the urge to upgrade your lifestyle, cooking at home and sharing accommodation can help reduce how much you borrow. Live within your means and avoid fear of missing out(FOMO) by embracing realistic budgeting habits.If you can afford it, start paying off some of the loan interest now. This approach can significantly reduce your total repayments after graduation.You can also take on a side hustle, freelancing, private tutoring, or a smallbusiness, to help ease your future loan burden. Just remember, it’s important to build multiple income streams without burning out.For the rest of us who have graduatedDon’t wait until the grace period ends, starting early can significantly reduce the interest you’ll pay. You can begin repaying your student loan as soon as you start earning, even if it’s just a small amount.Choose a repayment strategy that suits your financial situation:Snowball method: Pay off your smallest loan first to build motivation and momentum.Avalanche method: Focus on the loan with the highest interest rate to save more in the long run.Ideally, your total monthly loan repayments should not exceed 30% of your income. If the repayments start to feel overwhelming, consider options like deferment, restructuring, or income-driven repayment plans. Many lenders and governments offer flexible schemes to support borrowers in need.Beyond that, small adjustments to your repayment habits can make a significant impact. Making payments more frequently than once a month, rounding up your monthly instalments, or putting a portion of any bonus, tax refund, or unexpected income towards your loan can help reduce your balance more quickly. Also, check whether your lender offers an interest rate discount for setting up automatic payments. Even a small discount can go a long way over the life of your loan.Can I study and don’t pay a student loan?If you are academically inclined, scholarships and grants remain the best choice, because you don’t have to pay them back. If available, bonded scholarships are also worth considering, your education is fully funded, and in return, you commit to working for the sponsoring institution for a set period.If a traditional degree isn’t the only route for you, short, intensive bootcamps in tech, design, or business can offer a quicker return on investment without the burden of large loans. In Southeast Asia, reputable programmes like General Assembly, NEXT Academy, and RevoU provide training with strong job placement support and high employment rates.Meanwhile, Income‑Share Agreement (ISA) schemes – where you only start paying tuition once you have an income – are emerging globally. Although still rare in Southeast Asia, they’ve gained attention as an outcome‑based funding model. ISAs can increase access to education by aligning payment with your earning capacity, reducing upfront risk.Manage it, don’t fear itStudent debt doesn’t have to derail your future, but it can. Without a clear plan, it may delay your goals or add unnecessary pressure.It’s not just about the amount, but how you handle it. Build a strategy that fits your reality, stay flexible, and take action early.