Congratulations, you just graduated college! Besides looking for that first job, the next order of business is to begin paying back your students loans. Here are some tips to consider as you begin paying for that education.
{AUDIO} Tips for Graduates: Paying Back Student Loans
Understand your loans
Before graduation, your college should have put you through exit counseling. So, you should already have knowledge on who you owe, how much you owe, the amount of your monthly payments, and when they will be begin. If you don't, now is the time to do your research and begin preparing for that first payment. Chances are you have a six-month grace period before your first one is due.
Consider loan consolidation
After you have been making your regular loan payments, you may be eligible for loan consolidation. Understand that if you do consolidate your student loans, your payment might be lower. But, it could be higher. And realize consolidation may extend the loan payoff time due the change in interest rate. One thing to consider is the psychological battle for paying off loans. You may be more determined to pay extra on a series of smaller loans rather than one, big, consolidated loan.
Be aware of loan forgiveness programs
Depending on your job field or place of employment after college, you may be eligible for a loan forgiveness program - meaning a portion or all of your student loans may be forgiven if you work for a certain amount of time. We're certainly not against these programs. However, make sure you do your research and fully understand the program and how it may change based on your future employment or future income.
Parents, if you need help navigating your college graduate's next season of life, we'd be glad to help.
You can call me at 320.222.4236 or you can email me at [email protected].