The class of 2012 will graduate with more than two-thirds of students in debt of an average of $25,000 in student loans! According to a recent article by the Wall Street Journal, this student loan debt is in addition to the average of $4,000 in credit card debt. Whether you have a job lined up or not, it is your job to:
- Establish a plan to pay off this student loan debt. As you know (or should know), your student loans are officially “due.” Now that you have graduated, you are responsible to begin paying them off. You need to develop a plan immediately to begin payments. Paying off your student loans slowly and over the full time period that they are due (typically 10 years) is fine, and this will actually help you establish a good credit score. Failing to pay your student loans on schedule will damage your credit score.
- Develop a plan for your future to avoid more debt! Now…why do you have to think about making a plan for your future (and what “future” are we talking about, anyway)? You need to start planning for your retirement. Although it seems far away, it is never too early to start saving. Make a goal for yourself. Save as much as you can today and increase the amount over time once you land a job or your salary increases. Any little bit of savings will help you now and avoid debt in the future!
For more on the article from the Wall Street Journal, click here. Have any questions or comments? Post below!