01.27.10 | Balancing student loan repayment and savings
Graduating from college and getting your first job comes with a sense of financial independence. However, financial independence comes with financial responsibility. As a college graduate living on your own you will probably have rent payments, credit card payments and student loan payments among other financial obligations. So how do you balance building your savings with paying down your debt?
Without a doubt you should be making at least your minimum loan payments every month, but if you have extra money in your budget should you use it to further eliminate your debt? That depends. It is responsible for a financially independent person to have about six months of expenses saved up. This way if you loose your job or come into extreme financial hardship you have something to fall back on until you can get on your feet. My suggestion would be to put the extra money in your budget into a savings account until you have this six month safety net. Once you have enough savings build up you can use the extra money to pay down your student loans.
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That was very insightful and eye opener!
February 27th, 2010 | #
Very helpful! Thank you
February 26th, 2010 | #
I Like it
February 26th, 2010 | #
Thank-you for supplying information
February 25th, 2010 | #
It is very wise to stay away from credit cards because all they are high interest loans that will follow you for a long time. Especially when you go the college because credit card companies target college students!
February 24th, 2010 | #
good stuff, just have to follow through
February 24th, 2010 | #
thanks for the info, its very useful
February 24th, 2010 | #
thanks for the help
February 24th, 2010 | #
true
February 23rd, 2010 | #
helpful
February 23rd, 2010 | #
it gave me a lot to think about
February 20th, 2010 | #
wow! this made alot of sence. Thanks
February 20th, 2010 | #
very helpful
February 20th, 2010 | #
helpful, thanks!
February 16th, 2010 | #
Yes, this is exactly the situation I’m in now. I have rent and credit card payments, that’s why I am aiming for scholarships rather than student loans.
February 16th, 2010 | #
The informations was very helpful, and im sure will help me in the future.
February 16th, 2010 | #
This information will help me in the future.
February 15th, 2010 | #
financial aid information is always helpful
February 12th, 2010 | #
My parents are just throwing interest rate numbers at me and i have not even gootten a loan yet thank u for this info.
February 11th, 2010 | #
I dont thing repaying my loan with a credit card is wise for me.
February 11th, 2010 | #
I’m scared to balance out loan payments like that because right now I’m having so much trouble so much as balancing my checkbook!
February 11th, 2010 | #
My parents always tell me the whole “6 month safety net” & I always say, “yeah I know…” I’m a 20 year old college student with no safety net still. This article made me realize I should’ve listened to my parents, however, that’s always easier said then done, isn’t it?
February 10th, 2010 | #
This is great information!
February 9th, 2010 | #
Although this is still far off for me, I am really enjoying the whole ‘economics’ topic in high school right now. Hopefully, I can stay on track in college!
February 9th, 2010 | #
This is a good point, however I am not to that point where I can start repaying my student loans.
February 8th, 2010 | #
Wow. This information was really helpful! Thank you sooo much!!!
February 8th, 2010 | #
Thanks for the advise
February 7th, 2010 | #
Its very helpful but I haven’t got to that point yet
February 4th, 2010 | #
this was very helpful
February 4th, 2010 | #
It’s never good to pay your bills with any credit card.
February 4th, 2010 | #
I,ve had loans in the past and it’s good if you can really have a good plan on tips to paying them back.
February 4th, 2010 | #
GOOD TIPS
February 4th, 2010 | #
When you think about school loan you remember all of the horror stories you heard from others.you wonder even how you are going to pay your own loan back. I found it helpful in comments in paying back loan; especially when you have other debts.
February 4th, 2010 | #
very helpful info.
February 3rd, 2010 | #
A little hard to digest right now beacuse I’m still trying to oiece together how to finance collge. I know this is important too.
February 3rd, 2010 | #
This is something I need to look into.
February 3rd, 2010 | #
It is not going to be fun graduating with student loan payments, a car payment, car insurance, phone bill, and rent oh and i guess I should eat somewhere in between there to.
February 3rd, 2010 | #
those are great tips!
February 2nd, 2010 | #
money is a big deal right now for me so this info actually gave me some advice on how i should manage it.
February 2nd, 2010 | #
My spanish teacher put money in his saving accounts so it would help him pay his students loan. He said it was a much easier way to save.
February 2nd, 2010 | #
My Spanish teacher saved some money in his saving accounts to pay for his student loan. He said it was a much easier way to pay all debts.
February 2nd, 2010 | #
Being a college graduate seems a long ways away, but I know it is important to start thinking about and planning for that time. Thanks for the information.
February 2nd, 2010 | #
This article was very helpful. But what do you suggest for someone who is working during their year off between undergraduate and graduate school?
February 2nd, 2010 | #
Knowing what you’re getting into is the key. I had no idea, with my undergrad and I regret that now. That’s why I refuse loans for grad. school and am working my way through.
February 2nd, 2010 | #
This is great information for students that need help in learning how to manage their money budget.
February 2nd, 2010 | #
it was informative and i totally need A LOT of loans. story of my life haha
February 1st, 2010 | #
I would try geting discover and doing what my parents do; they pay the bill in full when it arrives. This cuts down the interest and prevents slavery that the banks do with individuals.
February 1st, 2010 | #
Thanks for the help, though I’m still nervous about college and all the debt to come.
February 1st, 2010 | #
Wow! That sounds so simple and yet people still have problems with debt. Great info.
February 1st, 2010 | #
I think that this is the most helpful and easiest way to get a shcolarship.
February 1st, 2010 | #
same here
January 31st, 2010 | #
I think that saving up 6 months of expenses is very bright! I think that is a great long-term goal to keep in mind…
January 31st, 2010 | #
my granny told me this same stuff, and she knows what she’s talking about
January 30th, 2010 | #
Hey rachel that’s genious! I should do that because despite the 6 month window they give me after I graduate. Thanks for that little pointer. This is a good article. 10 out of 10 for precise guidance and instruction.
January 30th, 2010 | #
This is really good advice because I probably would have just payed the extra money that month instead of making that saftey net.. hopefully I will not have to take out a loan because I am scared of the debt, but if I do, I will definetly follow these guidelines!
January 29th, 2010 | #
very helpful article, I really need to know how to balance student loans, before I apply.
January 29th, 2010 | #
I am paying my loan while I am in college,when I get out of college I have no loan TO PAY BACK
January 28th, 2010 | #
i agree with Vanessa
January 28th, 2010 | #
i found helpful information at this site and good ideas for getting and saving money. Thank you.
January 28th, 2010 | #
Thankyou! My parents are already talking about me re-paying loans I don’t even have! I’m going to show them this so they can see there’s more to just paying back loans once I am out of college.
January 28th, 2010 | #
The best credit cards to start financially are Citi and Discover cards.
January 27th, 2010 | #
This seems to be very helpful, however it doesn’t apply to me just yet.
January 27th, 2010 | #