All Articles

A high-yield savings account, widely available from online banks, is generally the go-to choice since it keeps your money liquid and accessible while earning more interest than a typical checking or traditional savings account. It shouldn't be invested in something volatile, since the whole point is having it available quickly when you need it.

Most financial advisors suggest building at least a small starter emergency fund — often cited as one month of essential expenses — before aggressively paying extra on loans, since without it, an unexpected expense can force you into higher-interest debt like a credit card. After that starter fund, many people split extra money between building savings further and paying down debt.

It often comes from covering discretionary spending with loan refund checks, changing majors or schools and losing transferred credits, taking longer than planned to graduate, or not budgeting for the whole semester and running short later. Building even a rough budget at the start of each term can help you avoid gaps.

It's reasonable to factor your loan payments into what salary you need to comfortably manage, and many employers expect some negotiation, so it doesn't hurt to research typical pay for the role and make a case based on your value, not just your personal expenses. Employer education or loan repayment benefits are also worth asking about during an offer discussion.