Student debts have serious consequences for young graduates and one big reason is that they have a bad habit of overestimating the income they will have when they enter the job market.

However the ideal job doesn’t always instantly roll out the day after graduation, as many graduates realize that the job market is more competitive than they imagined when they were in school.

So when income is not up to par, repaying debts becomes perilous. And the financial stress escalates after graduation.

Here are the 10 tips to avoid being suffocated by student debt

(1) Keep your feet on the ground and spending to a minimum throughout your school career. Travel, outings, the car … is it really necessary? Don’t take on too much debt during your studies, thinking that all that money will be easily repaid once you enter the workforce.

(2) If possible, choose a program that will allow you to live with mom and dad during your studies. Otherwise, accommodation costs will result in significant additional expenses.

(3) Many graduates regret not having worked more hours during their studies. If that doesn’t hurt your school results, get to work … at least during the summer.

(4) Favor student loans guaranteed by the government from a financial institution. During your studies, you will not have to pay interest. But when you finish your studies, pay off your loan as soon as possible, because interest starts accruing immediately, although you can wait six months before you start repaying.

(5) Hurry! By completing your studies on time, you may be eligible for the Debt Relief Program, which aims to reduce the debt of a graduate who received a scholarship each year.

(6) Find out about the deferred repayment program which allows you to set the repayment of your student loan according to your financial capacity and your family situation. This is without taking into account that the interest will be assumed by the government.

(7) Use the tax authorities. To ease the burden on graduates, governments in many countries offer tax credit on interest paid on student loans.

(8) Resist financial institutions that offer students incredible lines of credit. Interest rates are much higher. And unlike the student loan, you must pay the interest on your loan during your studies.

(9) Take it easy with credit cards, car loans, or department store finance plans. It’s the other debts that pushes young people on the verge of bankruptcy.

(10) Always make your payments on time including credit card and other loans. Otherwise, you will undermine your credit report and your next loans will cost you even more in interest. Don’t get into this vicious cycle early in your financial life.

Author Bio:

Hi, I am Nikesh Mehta owner and writer of this site.

I’m an analytics professional and also love writing on finance and related industry. I’ve done online course in Financial Markets and Investment Strategy from Indian School of Business.

I can be reached at nikeshmehta@allonmoney.com. You may also visit my LinkedIn profile.