Apr 28, 2017 12:35 PM EDT By Emily Marks, UniversityHerald Reporter

Loans are designed to help students pursue their higher education now. It is intended to help students achieve their career goals and, when they already have a stable job, pay back the amount they used up.

However, student loans have burdened a lot of graduates who struggle to pay back the loan along with its interest. One reason for this may be because they took more student loan than needed and used it on non-educational things.

It was previously reported that several college students are squandering their loan money on non-educational expenses. It was said that 13 percent of students spent it at restaurants while 15 percent bought clothes with the funds.

To prevent this, students should only borrow the amount that they need and decline the excess. U.S. News shared three tips on how students can calculate for this amount.

Make a budget

Instead of just accepting all the money that a student's chosen university or college recommends in a financial aid offer, they should sit down and take the time to figure out how much their budget is. Jonathan Burdick, dean of admissions at the University of Rochester in New York, said that smart students will monitor their spending and learn to budget according to their own lifestyle instead of relying on the suggested calculation. It's very important for students to have a budget planned out. This is intended to let them know where their money is going and how much is coming in.

Decline a loan that's not needed

A refund check is often given to students to use for living expenses after the tuition is paid. However, instead of actually spending the money, they can opt to reject a loan upfront if they estimate that they will not need the full check. Students can lessen their expenses by commuting or finding lower-cost housing and get other sources of funding like from private scholarships.

Know how to decline a loan

Majority of universities and colleges use an online portal to make it easier for students to accept the full loan or a part of it as well as to decline it. Fortunately, a declined loan can still be requested again as long as it falls within the academic year. When declining loans, students should consider interest rates, payback rules, options for income-based repayment plans and options for suspending payments during graduate school or other times.

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