Student Loans: Paying Them Right Out of College
Graduating from college is a huge accomplishment but the debt that comes with it can be an even bigger accomplishment to pay off. As of 2015, a student will graduate with an average of over $35,000 in student debt.
Unfortunately, with the rate of rising tuition this number is only going to grow and get bigger. In fact, the majority of students graduating from a college or university will have student debt.
Then the next issue becomes how these recent graduates plan on paying back all of the loans they took out to cover their education without going into default. Finding a job right out of college is tricky and can take awhile. Most of the time it will take longer than the initial grace period given to recent graduates before they have to start making payments.
As a result, there are certain things you can do to pay off your student debts straight out of college that are simple and easy.
Get a part-time job or internship.
Getting a job right out of college or a university can be very hard, especially when you have the added pressure of having to pay back your student loans. Therefore, instead of looking for a full-time job, open your options up and try for a part-time position.
Part-time jobs can be a very good opportunity to grow more within your career field while still earning money toward your student debt. Not to mention, part-time positions can more often than not lead to a full-time position.
Ask your parents for help with your student loans.
You might find it tough to ask your parents for help now that you are officially a college graduate but they can be a great financial resource. They not only have experience with debt but the added value that they care about your future, and thus will be more prone to helping you out.
See if your parents will be able to help you out a little to pay off your student debt. Let them know that you just need some initial backing before you can go it alone. Presenting a plan might even be better.
Sell your old items.
Now that you have graduated college, you can start shedding yourself of all of your college stuff and take this opportunity to make money off of your items. Instead of giving away your couch, bed and other items sell them.
You can make a decent amount of money selling your items to college students and use that for paying off your loans. Have a garage sell or think about selling some items online, that way you can sell your items of faster and raise more funds.
Get a second job.
When you first graduate college the first thing you do is get a job, so while you’re at it, why not get two. Having two jobs will increase your income by a significant amount which in turn will give you more funds to put towards paying off your debts.
Use the income from the second job for your debt specifically and use the income from your first job for your bills and necessities. Try to keep them separate so that you aren’t confusing the funds and find yourself defaulting on your loans.
An even better idea, would be to keep your income from each job in separate accounts so the funds are easier to manage and track.
Live at home.
We all know the first thing you want to do when you graduate college is go out and conquer the world. However, sometimes it pays to go back home; it isn’t the greatest idea but it can help to save you a lot of money.
Living at home with you parents won’t be ideal but when you start seeing the amount of money you save, it will grow on you. When you live at home, you save on living expenses like rent, electricity, food, etc. You might still have to pay these, depending on your parents, but at least you will be splitting the expenses with your parents.
Use the 6 months grace period to plan and save.
When you first graduate from college, most lenders will give you a grace period, or a 6 month period of time before you will officially have to make payments on your student loans.
This is due to the fact that lenders want to give you the best chance at not defaulting and being able to make your monthly payments. You can start making payments before this time is up but you should use it to devise a plan or save money.
If you get a job right out of college, you should immediately start saving a portion of your monthly income. If you don’t get a job, in that time, make a detailed plan of how you will make your first payment and each payment after.
Student debt is a huge burden and one that can last for many years, so the best way to tackle this specific debt load is to plan and be prepared. At the same time, asking for help is also an option not just from family but from professionals. If you feel that you can’t handle your debt on your own, reach out to a professional for guidance. A professional will be able to assist you in your debt relief goals and make sure you avoid future debt.