10 Ways to Manage Your Student Loan Balance and Graduate Debt-Free

3) Establish good credit with your student loans

Since student loans are not dischargeable in bankruptcy, they will affect your credit history. With a credit card, you can at least carry a balance that offers a grace period and pay no interest. You cannot do that with federal or private student loans; as soon as you take out money in student loan form, it becomes good debt or bad debt based on how much you can afford to repay.

4) Set realistic payment goals

Starting with realistic expectations is important. Paying off a $50,000 debt load in five years will be an impossible task if you’re only able to pay $100 a month on your student loans. Take some time at the beginning of your repayment period to work out a feasible payment plan. This can prevent frustration, feelings of hopelessness, and ultimately defaulting on your loan payments. The key is starting out with a number that you know you can meet each month—the rest is easy math from there.