Jeanne Kelly’s tips regarding Student Loans and Credit
Graduations are here and I can’t help but think about all the amazing college graduates that will be launched into the real world these coming months. And then my mind wonders to all the student loans they will be managing…quite the introduction to adulthood! So, this month I thought I would provide some tips for our graduates.
Tip #1: Get organized. Students often change schools, move multiple times, and take out more loans than they realize over their college career. The first task after graduation is to locate all of your student loans, make sure your lenders have your correct address and graduation date, and make note of when repayment will begin on all of your loans. Visit the National Student Loan Data System to double-check that you know about all your student loans.
Tip #2: Explore options for loan forgiveness. There are numerous federal, state, and local loan forgiveness programs that could be helpful in paying down your student loan debt, especially if your degree or career is in public service, education, medical or military. “It’s worth the time to do some research; and researching them thoroughly for features, benefits, and eligibility criteria is a must,” says Jay Popkey, CFP at SoFi. Here’s a good place to start, a complete list of student loan forgiveness programs and options: https://studentloanhero.com/featured/the-complete-list-of-student-loan-forgiveness-programs/.
Tip #3: Payoff your student loan debt as fast as possible. As Ferris Bueller once said, “Life moves pretty fast…,” so if you want to someday buy a home or a new car, or save money for your next important goal, I recommend becoming laser focused on paying down your student loan debt as quickly as possible. Face it, you’re used to living like a starving student, so take advantage of that, put off luxuries for a little while longer and pay down your student debt. This will help set you up for greater financial security and offer you more freedom to do what you want in the future.
Tip #4: Emergency savings fund. You do want to make sure you’re taking care of other important financial decisions such as creating an emergency savings fund. You should try to have 3-6 months of living expenses saved in an account.
If you are a graduate or are a parent of one, make it a point to take care financially. Your future self will thank you! Congratulations graduates!
Kelly Group Coaching, Inc