Graduating with student loans

Written by Amina Isakovic

I’m a senior in college and am about to graduate with a lot of student loans on my shoulder. My biggest worry is not paying them off, but how long I will be paying them off for.

My first task is to consolidate my student loans for a lower interest rate in a ten to fifteen year repayment plan, (StudentDoc). Then comes the shopping cart of things. Because student loans have the lowest interest rate, especially after consolidation, my credit cards should be paid off first, of course. Next, I start creating an emergency fund and adding to my retirement.

But what type of monthly payment am I looking at? Well, for example lets say I graduate with $19,000 in total college loans at 6.8% interest. For a ten year repayment plan, my monthly payments would be $220, (Kiplinger). $220 doesn’t seem like a lot of money, but it all depends on my salary next year.

So let’s say I get an entry level position in a marketing firm in Boston, MA with a salary of $35,000, with standard taxes and withdrawals, that’s about $2500 take home. Don’t forget groceries, rent, entertainment, the retirement fund, and to top it off $220 in student loans.

Overwhelmed? Me too. But here are five steps that will take you in a good direction, (Soyouwanna.com).
1. Figure out who you owe and how much you owe.
2. Consider wiping out your loans with some do-gooding
3. Learn about repayment options
4. Learn about ways to delay your payment
5. Learn how to survive default.

Hope this helps!

Sources:
http://www.studentdoc.com/student-loans.html
http://www.kiplinger.com/columns/drt/archive/2007/dt070509.html

http://www.soyouwanna.com/site/syws/loans/loans.html