How to avoid over-borrowing on your education loan and save money
Learn how to calculate your real cost of attendance, use scholarships and part-time work, and borrow only what you need with Prodigy Finance’s smart funding tips.
The smartest loan is one that helps you reach your goals — without stretching your budget.
Studying abroad is one of the biggest investments you’ll ever make. It’s exciting, but it’s also easy to borrow more than you really need, especially when you’re juggling tuition, living costs, and moving to a new country. Smart funding isn’t about taking the largest loan available. It’s about understanding your costs, using scholarships and savings strategically, and borrowing just enough to cover your essentials.
At Prodigy Finance, we believe in smart funding, not just easy funding, and that starts with making informed choices.
1. Know your real cost of attendance
Every university provides an estimate called the cost of attendance (COA) - the total amount it expects a student to spend per year, including tuition, fees, living expenses, books, insurance, and travel.
But that’s just a starting point. You can reduce your actual need by tailoring this estimate to your lifestyle:
Review your spending habits — do you really need the full meal plan or can you cook at home?
Check location costs — rent in smaller cities can be half the price of big capitals.
Plan for the exchange rate — add a small buffer for currency fluctuations, but avoid over-inflating your budget.
The smaller your funding gap, the less you’ll need to borrow — and that can mean paying less interest over time.
2. Separate your essentials from your nice-to-haves
Before applying for an education loan, make a list of what’s essential versus what’s optional.
Essential costs:
Tuition and mandatory university fees
Health insurance (if not covered by your school)
Accommodation and basic living expenses
Optional costs:
Travel during holidays
Upgraded housing or gym memberships
New gadgets or subscriptions
3. Use scholarships and part-time work to your advantage
Scholarships, research assistantships, and merit-based awards can make a big difference. Even a USD $2,000 grant could reduce your overall loan need and save you hundreds in interest over time.
Before borrowing, check:
If your university offers departmental or country-specific scholarships.
Whether you can work part-time under your visa conditions.
If alumni or corporate partnerships offer bursaries for your course.
Remember: Every dollar of scholarship funds your overall interest payments over time.
4. Borrow only what you need, when you need it
Many students feel tempted to accept the full loan amount they’re offered, but that’s rarely necessary. With Prodigy Finance, you can borrow only what you truly need and we send the funds directly to your school, so you don’t have to manage large transfers yourself.
If your course lasts two years, you can re-apply for your second-year loan later, once you’ve reassessed your needs. This flexibility helps you stay in control and avoid unnecessary borrowing.
5. Track your spending while studying
Once your loan is disbursed and your studies begin, it’s easy to lose track of daily spending. But even small savings matter.
Try these simple steps:
Use free budgeting apps to monitor your spending in real time.
Set weekly limits for food, travel, and entertainment.
Convert everything into your home currency occasionally — it helps you visualise the real cost.
When you graduate, you’ll thank yourself for building strong financial habits early on.
6. Think ahead to repayment
With Prodigy Finance loans, repayments begin after your grace period (depending on your loan terms), which gives you time to settle into your new job before making payments. Borrowing less today can mean lighter repayments tomorrow.
To stay ready:
Use a loan calculator to see how different amounts affect your future monthly payments.
Start saving small amounts during your grace period — even USD $50 a month can build a repayment cushion.
If your loan allows early payments without penalties (like Prodigy Finance’s), you can reduce your total cost faster.
7. Why Prodigy Finance champions smart borrowing
At Prodigy Finance, we’re more than a lender, we’re your partner in responsible funding. Our international student loans come with:
No collateral, no co-signer required*
Flexible tuition disbursement, with funds sent directly to your school
Transparent pricing, with no hidden fees or penalties for early repayment
Repayments that start after your grace period (as per your loan terms)
We support students from 120+ countries, and we have partnered with 1800+ schools, so you can focus on your education without worrying about borders or bureaucracy.
Read more: The ultimate guide to financing your global education
8. Take your next step
See your personalised Prodigy Finance quote and borrow only what you need for your studies. It’s quick, online, and commitment-free — helping you plan your budget smartly before you apply.
