Education loan hack: Financial advisor shares ₹13 lakh loan saving strategy

Smart loan management is all about striking a balance between financial discipline and strategic planning. By understanding your repayment schedule, making timely payments, and using tools like moratoriums wisely, you can stay in control instead of letting debt overwhelm you. Paying off loans early — especially high-interest ones — not only reduces your overall interest burden but also frees up future income for investments and savings.

Taking on an education loan often feels like a heavy financial burden, but paying it off strategically can make all the difference, says chartered accountant Nitin Kaushik. 

In a widely shared post on X (formerly Twitter), Kaushik broke down the numbers with a real-life example. “Imagine taking an education loan of ₹17 lakh. If you let it run its full 20-year term, it doubles to ₹34 lakh with interest. But my friend paid it off in ₹21 lakh — saving ₹13 lakh,” he wrote. 

According to Kaushik, the key lies in understanding the moratorium period — a feature many borrowers misuse. “People think of it as free time. In reality, it’s a financial cushion to plan repayments. Used wisely, it helps you pay down the principal faster and save on huge interest outgo,” he explained. 

He also highlighted the time value of money principle: every rupee paid today saves more in the long run by cutting compounding interest. For instance, early and aggressive repayment of the ₹17 lakh loan cut down the total payout to ₹21 lakh instead of ₹34 lakh. 

Kaushik urged young professionals to resist the urge to inflate their lifestyles with every salary hike. “Instead of splurging, channel extra income toward loan repayment or asset-building. Early repayment means freedom plus big savings,” he advised. 

His message combines psychology with strategy: 

• Treat loans as tools, not traps 
• Use moratorium periods to plan repayments 
• Prioritise paying principal early 
• Avoid lifestyle inflation after raises 

The big-picture takeaway, Kaushik stressed, is clear: “Your loans can either drain you slowly or make you financially stronger. The choice is yours.”