Managing Student Debt for New Graduates
Student debt can feel like a huge monthly obstacle. But like all obstacles, it can be overcome. The team at Broussard Poché, LLP has a few planning and budgeting tips that can make your student loan debt more manageable.
Okay, this one may seem a bit harsh, but the world is full of opportunities to make a little extra income. Many recent college grads decide to keep the part-time job they had in college a little longer. Keeping a part-time job can help supplement entry level income recent grads face. The extra income can go towards student loan payments until your career can fill the gap.
BUDGET, BUDGET, BUDGET
Make the budget you’ve come up with a priority. Consider a spreadsheet with all of the figures properly laid out. Don’t forget to include things you need to save for, like a new computer or car. Also, plan for emergencies! Once you have a proper budget, stick to it. This will ensure your student debt is paid on time and it won’t interfere with the rest of your financial life.
Most graduates have multiple loans to pay off. You might want to consider the “snow ball” method to paying them off one by one. Make sure you are paying the minimum for each loan, then choose the smallest one to put extra money towards. Once that one is paid off, take that money and put it towards the next to smallest loan, so on and so forth. This method helps you make progress and could lead to paying off your loans early.
If you can find a way to incorporate each of these tips into your financial life you will see your student loan debt decrease. You may also want to consider loan consolidation and refinancing as time passes. Once you have a better handle on how much money you will be making in your new career, more options will be available.