# How to plan an overseas vacation — even if you have student loans By [Kassondra Cloos](/content/blog/author-page/kassondra-cloos/index.html) **|** Published on October 21, 2025 ) We’ve all met at least one world-traveler who says it’s “easy” and “cheap” to travel the world. And we’ve all probably thought the same thing in response: “Oh, yeah? How much are YOU paying for student loans every month?” For most of us, expensive flights aren’t an option, and we don’t have weeks of vacation time to make them worth it. Even if you do have a little cash to spend, it’s easy to feel guilty about paying for a vacation when you have thousands of dollars of debt hanging over your head. So, what’s the answer? Should you go on vacation if you have student loans? And is there a way to do it without feeling like you’ve abandoned your financial goals? Here’s what to consider—plus a few tips for planning an incredible trip on a budget. ## **Should you go on vacation if you have student loans?** It’s important to find ways to take care of yourself and do what you love—even if that involves spending a little money from time to time. That said, you should first make sure your personal finances are relatively stable and that you have at least a little financial cushion. If you have serious credit-card debt or high-interest personal loans that you’re not actively [working on paying down](/content/blog/debt-reduction-strategy/index.html)—or if you have a more pressing expense you need to save up for, like a new kitchen appliance or a medical bill payment—your vacation may need to wait. However, if you have a steady income, are [making your payments on time](/content/blog/loan-payments-on-time/index.html), and already have cash saved up in an emergency fund, you can likely justify a vacation. While it may not be prudent to spend your entire life’s savings on a blowout vacation, taking little getaways every now and again can be of huge benefit to your mental health—and help you come home feeling restored and ready to tackle your debt in earnest. Plus, with a little planning and a friend you love enough to drive with for hours, you can have a great vacation in Iceland, Canada, the American Southwest, or California with less than $1,500. ## **7 Cheap Places to Travel in Europe in 2025** These six locations are perfect for travelers on a budget — which makes it easy to plan a getaway without sacrificing your financial goals. **Prague, Czech Republic** Many European cities have a single historic district where you can get a small peek into medieval life. But in Prague, nearly the entire city remains exactly as it was 500 years ago, making it a feast for the eyes and a veritable maze of gorgeous stonework bridges, crenelated towers, and elegant statues. While the city is filled with museums, restaurants, and other attractions, you can enjoy much of its charm — i.e., its architecture and profoundly ancient feel — completely for free. [Plan your visit for spring or fall](https://travel.usnews.com/Prague_Czech_Republic/) to benefit from thinner crowds (and cheaper hotel prices). **Tallinn, Estonia** One of Europe’s tech hubs, [Tallinn](https://wheretowander2024.atlasobscura.com/location/tallinn) offers a wondrous juxtaposition of high-speed modern amenities and an ancient history. Much of the city is surrounded by castle walls, criss-crossed with narrow alleys, and paved in time-worn cobblestones. And yet, [WiFi is plentiful and reliable](https://www.visittallinn.ee/eng/visitor/plan/good-to-know/free-wi-fi-areas), the public transit system is fast and intuitive, and most of the town’s residents speak English. It’s very easy to navigate. Many of the town’s top attractions are also affordable: Swim in the Baltic Sea, walk the castle walls, visit the [botanic garden](https://botaanikaaed.ee/en/), and wander local art markets for endless entertainment on a budget. **Athens, Greece** Athens may be a cultural hot spot, but it’s only a tourist magnet a few months of the year. Go during October or November, and you’ll benefit from [affordable lodging and cheap airfare](https://www.travelandleisure.com/travel-tips/best-time-to-visit-greece). The off season also mean fewer crowds — which means you’ll get the town’s highlights, like Greek and Roman ruins and [incredible museums](https://www.travelandleisure.com/athens-greece-travel-guide-8557653), all to yourself. **Reykjavik, Iceland** In just a few years, Iceland has gone from “Huh?” to hot spot, in large part thanks to [affordable flights](https://thriftytraveler.com/news/travel/what-its-like-in-iceland-right-now/) from the U.S. (and a [free stopover program](https://thepointsguy.com/news/explore-iceland-free-stopover-icelandair/)). Once you’re there, it just gets better: Full of natural hot springs, more waterfalls than any guide book could reasonably name, and otherworldly landscapes, this place is the stuff of dreams. You can take public transit directly from the airport to Iceland’s capital city. Once you’re here, [bus tours](https://bustravel.is/iceland-tours?gad_source=1&gclid=CjwKCAjwyfe4BhAWEiwAkIL8sAcmEPU5TvmDJPUAxfMqHZoGGIhwNKPWlZaA0uHyVLHZ9cED8350MhoCROgQAvD_BwE) around the Ring Road make it simple to explore many of the country’s top attractions without having to rent a car. Rental scooters and reliable buses make it easy to get around town, where saunas, unique architecture, and unique museums offer plenty to entertain. Lodging is also easy to find on the cheap, particularly if you book one of Reyjavik’s [swanky hostels](https://www.kexhostel.is/)). **Lisbon, Portugal** Positioned right on the Atlantic, this colorful coastal city offers the twin benefits of [cheap flights](https://www.kayak.com/flights/NYC-LIS/2024-11-13/2024-11-20?sort=bestflight_a) and [inexpensive lodging](https://www.cntraveller.com/gallery/best-cheap-hotels-in-lisbon) — especially during spring and fall shoulder seasons. Walk along the ocean, sip wine in a plaza at twilight, savor fresh seafood, or wander the city’s markets and parks for an action-packed yet inexpensive getaway. **Budapest, Hungary** Affordable dining, gorgeous architecture, and a scenic position right on the Danube River make Budapest, Hungary, one of the most underrated cities in Europe. The city’s position between Eastern Europe, Western Europe, and the Middle East makes it a crossroads of cultures and flavors; here, you’ll see everything from Ottoman architecture to peak Renaissance-era art. The city is easy to navigate by foot and via public transit, which means you won’t need to rent a car. [Hotels are also more affordable](https://travel.usnews.com/Budapest_Hungary/) than in many other cities in mainland Europe. **Sevilla, Spain** One of Spain’s cultural epicenters, [Sevilla](https://travel.usnews.com/Seville_Spain/) is a hot spot for music, bull-fighting, and Flamenco dancing. It’s possible to attend many of these events relatively inexpensively, but if you’re on a tight budget, you can still enjoy the famous nightlife, sprawling parks, and iconic architecture just by strolling through the city each evening. Sevilla is relatively small and easy to get around, which makes it easy to save money on transportation; travel on foot or rent a bike from the city’s [bike-share program](https://www.sevici.es/en/home) for maximum savings. ## How to save money for your next vacation If vacations to the above destinations still feel pretty out of reach on your current budget, it may be time to [get creative with your savings strategies](/content/blog/creative-ways-to-save-money/index.html). Here are a few ways to save up ahead of your next vacation. - **Earn free miles with a travel credit card:** If you know you have travel coming up, consider signing up for a travel credit card, which can help you earn airline points. Most have generous promotional deals, which give you a big chunk of miles just for putting a certain amount of money on the card within the first few months. (Just make sure you aren’t spending more than you can pay off; otherwise you risk going into [credit card debt](/content/blog/good-debt-vs-bad-debt/index.html) and getting slapped with high interest charges.) - **Re-examine your living expenses:** If you aren’t able to save up enough money for a vacation, it might be worth [re-evaluating your budget](/content/blog/budget-to-pay-off-student-loans/index.html) to make sure you’re living well within your means. Can you take on a roommate to help you split rent, or cut back on how much you eat out? Making a few lifestyle changes could help you stick to your student loan repayment plan and still have cash to spare for travel. - **Take on a side gig:** If there’s a trip you’re dying to go on, it might be worth taking on a part-time job or finding a way to [generate passive income](/content/blog/passive-income-for-college-students/index.html). If you already work full-time, consider bartending or working in retail a couple of times per month on nights or weekends. Put this extra income stream straight into a savings account earmarked for travel expenses. - **Refinance your student loans:** If you have high interest rates on your student loans, a significant portion of each monthly payment is going toward interest—not toward paying down your actual debt. The good news? Borrowers with [good credit scores](/content/eligibility/index.html) can often lower their interest rate (and therefore their monthly payments) by [refinancing their loans](/content/blog/how-to-refinance-student-loans/index.html) with a private lender. That can help you free up room in your monthly budget and start saving up for your next vacation. ) ## About the Author ## Kassondra Cloos Kassondra Cloos is a writer, editor, and former Earnest client. She refinanced her own student loans with Earnest after graduating and has first-hand experience with the refinancing process. She has been writing about personal finance and student loans since 2017. She also writes about sustainable travel and adventure for The Guardian, Outside, Backpacker, and many other publications. You can find more of her work via her travel newsletter, Out of Office.