There are thousands of college students that graduate each year worried about their student loans and other financial worries. There are some that have found their expected rate of pay won’t be available because their job prospects have all but disappeared. There are others that worry about paying their student loans with a fraction of the income they were expected to make after graduation. College students should know that financial worries are will always be there but with the right management, student loans and other financial debts don’t have to be overwhelming.
Student Loans: Coping and Managing
College is expensive. Most students pay for their college education with student loans and savings. Once students graduate, they often find themselves the recipient of multiple bills each month asking for huge repayment amounts. Instead of approaching student loan debt with panic and fear, there are multiple things that can be done to minimize the effect these loans can have on a student’s financial life.
Ask for a Consolidation Loan- Every year students request more student loan assistance, they are requesting a new loan. When it’s time to repay those loans, each loan holder will ask for their portion on a schedule set by them without consideration to other loans that may be out there. Instead of paying multiple loan holders each month, students can request all federal student loans be consolidated into one loan. This will allow them to negotiate an affordable repayment amount. It’s easier to budget one student loan payment instead of 3 on any salary.
Review Repayment Plans- Most students don’t realize they don’t always have to pay the amount that is on their student loan invoices. Many don’t call to discuss their repayment plans because they believe that amount is set in stone. It’s not. Instead of paying standard amount, call the student loan holder and discuss repayment plans and options. Many students are surprised they qualify for a different option that will give them a lower repayment amount each month.
Student Finances: Coping and Managing
Graduating from college is an exciting moment for anyone. It’s something that many have dreamed of. Once the elation is over and the time of celebration is over, reality sets in. Financial stress is one of the most common stresses graduates have. It doesn’t have to be.
Make a Plan before Graduation- Graduates should graduate with a plan in mind. This is something most forget and don’t think about until the last balloons have been released. Graduating with a plan will give graduates a sense of direction to take once they are on their own. Their plan should include housing arrangements, job plans, a budget and transportation. By thinking of these things before graduation, students will be able to make arrangements for the immediate future after graduation and give themselves an action plan for what to do during that uncertain time.
Save Before Graduating- Yes, college is expensive but it doesn’t mean that every whim should be indulged. There will be opportunities for saving money on books, meals and other things. Instead of being concerned with constant partying and shopping, students should save as much as possible. Once graduation is over, the money will come in handy.
Make a Budget- There are some graduates that just don’t have a sense of responsibility. They don’t know what it’s like to live independently or how to fully care for themselves. As soon as graduates get a job, any job, it’s important for them to make a budget for themselves. This will allow them to see where their money needs to be spent and how much money they need to make. Many times, a budget will allow a graduate to avoid accumulating more debt than they need.
Financial stress shouldn’t be the focal point of anyone’s life, especially a student. With the right coping and management skills, student loans and other financial stresses won’t ruin a bright future.