Graduating from college is a huge, life-changing accomplishment. After years of hard work, you’ve finally reached your goal. But graduation is also a time of change and transition. Many graduates move, start new jobs, and take on new responsibilities, one of them being the payment of their student loans.
But did you know that many loan providers, including Stafford and Perkins loans, give you a six- or nine-month grace period? That means that you don’t need to start making payments right away. New graduates can take advantage of this period by applying those funds toward other outstanding debts.
Start the Next Chapter
It’s not unusual to leave college with an unresolved debt or two. Whether you fell behind on a credit card or lost track of a past-due bill, you don’t want to carry these burdens with you into the next stage of your life. After all, most people go to school so they can create a better future for themselves and their family. The first step to a better future is tying up loose ends from the past.
With student loan grace periods, you have a few months before that payment becomes part of your monthly expenses. That means that for the next six or more months, you could have an extra $200-$300 available. If you’ve lined up a job after graduation, this is your big chance to deal with any lingering past-due debts, either in one big payment or over a few months.
Turn Your Graduation Gifts Into A Brighter Future
Another smart way you can start your post-school life on the right foot is by investing any monetary gifts into your future. One of the most common graduation gifts is cash, and while it may be tempting to splurge on something flashy, consider using it to wipe out any nagging debts. This way, you can stop worrying about the past and start planning for the next chapter
You’ve worked long and hard to make it to graduation and you deserve a positive start to this new journey. Before those student loan payments kick in, consider paying off past-due debts so you can step into a better financial future.
*Although we hope these tips are helpful to you, Midland Credit Management does not offer financial advice. If you have questions or concerns about your personal finances, please speak to a financial advisor.