How to Avoid Debt After Graduation
With the rising cost of education, many students rely on loans to help finance their education. While student loans are a good option for those in need of financial assistance, it can also create an overwhelming amount of debt.
After graduation, students not only face the pressure of finding the perfect job, they also begin to fully realize the financial burden of their student loans. Regardless of whether or not they finish their education or find a job after college, their loans must be repaid.
Over 3,100 CollegeRecruiter.com Network users were asked "Do you still have student loans that you are paying off?" More than 33 percent said they are still paying off student loans, while the remaining respondents reported they do not have any student loans.
Of the respondents with student loans, nearly 47 percent owe between $10,000 and $25,000, 31.69 percent owe $25,000 to $50,000, 19.06 percent owe more than $50,000, and only 2.36 percent owe less than $10,000.
Although it can be intimidating to begin your professional life with a significant financial burden, here are a few tips to help effectively manage your student loans:
- Pay off as much as possible during the six or nine month grace period – it goes directly to the loan’s principal before interest starts accruing.
- Consolidate loans into one simple payment which can many times lower interest rates.
- Set a budget and stick to it.
- Research education-related tax credits and deductions.
- Sign up for direct withdrawal to ensure loan payments are on time.
- Strive to pay above the minimum loan payment.
For additional resources and information on money management and student loan consolidation visit our Student Loan Consolidation section.
-- Article courtesy of Beyond.com.
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