Congrats, grads! Now Start Tackling Your Student Debt
Just a few simple steps can help new college graduates make inroads in paying off their student loans and setting themselves up for a secure financial future.


Graduation is an exciting milestone signifying moving into adulthood. Unfortunately, with earning a degree, comes debt.
Nearly seven in 10 seniors who graduated from public and non-profit colleges in 2015 had student loan debt, with an average of $30,100 per borrower, according to the Institute for College Access & Success.
There are ways to alleviate some of the worries of student loans.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
1. Cut some corners and resist temptation.
It is easy to think once you land a job, you don't have to worry about money. But with newfound freedom comes rent, car insurance, food and paying back student loans. Think about a monthly budget that shows you what bills you have and what is left over. Think about the bigger picture and what you can live without. Cable is fun to have, but not a necessity, and it can cost over $100 a month. Consider streaming methods, such as Netflix and Hulu, for entertainment. Even an Apple music or Spotify subscription may be better than purchasing music one song at a time. Clothing can be expensive, but don’t forget to search for coupon codes to score major savings and free shipping.
2. Know your numbers, including your credit score.
Right before graduation students receive a letter outlining the six-month grace period before starting to pay back loans. In the letter is how much the loan is and what the monthly payment looks like. Pay special attention to the interest rate prior to establishing a payment plan.
There are many payment options, such as delaying a payment or asking for a lower payment available to recent graduates. If you haven't landed a job — or have lost your job — student loan forbearance may be available.
There are several repayment plans from which to select, thereby providing the flexibility you need. Here are some things you should know:
3. Establish a rainy day fund.
Set aside funds for unexpected expenses, such as car repairs or medical costs. Having a cushion can make all the difference when you know you need to eat and pay rent, but have student loan payments or other bills looming. Many financial experts encourage recent grads to have three months’ worth of expenses as cash reserves.
4. Remember: It’s never too early to think about retirement.
Many people think only older individuals worry about retirement. Everyone should start thinking about this when they join the workforce. Many employers offer 401(k) plans to help their workers save for retirement on a tax-deferred basis. Ask your HR director for more details on the benefits of your company’s 401(k) plan. While you may think you are too young to think about planning for retirement, you’re never too young to accumulate wealth.
Student loans don't have to be a huge nightmare. Try these steps to lessen the stress of student loans and plan for your financial future.
- If you don’t choose a repayment plan, you will be given the Standard Repayment Plan, which means you would have to pay off your loans in 10 years.
- You can switch to a different plan at any time to suit your needs and goals. For example, if your finances change due to a new job or losing a job, you can explore different options. Visit https://studentaid.ed.gov and look at the repayment calculator estimate. This tool can help you determine the most appropriate repayment plan for your situation.
- If you have multiple federal student loans, you can consolidate them into a single Direct Consolidation Loan. This lessens the stress if you have separate loan payments from different providers. If you consolidate, you will have one monthly payment to make.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Marguerita M. Cheng is the Chief Executive Officer at Blue Ocean Global Wealth. She is a CFP® professional, a Chartered Retirement Planning Counselor℠ and a Retirement Income Certified Professional. She helps educate the public, policymakers and media about the benefits of competent, ethical financial planning.
-
Are You Leaving Money on the Table? Four Strategies to Free Up Stuck Investments
From forgotten 401(k)s to outdated asset allocations, here’s how stuck money can hurt your retirement.
-
COVID Aged Your Brain Faster, Even if You Didn't Get Sick
Whether you contracted COVID or not, your brain took a hit. Here's what that means for your health and what you can do about it.
-
Five Things to Do if You're Forced Into Early Retirement (and How to Reset and Recover)
Developing a solid retirement plan — before a layoff — can help you to adapt to unexpected changes in your timeline. Once the initial panic eases, you can confidently reimagine what's next.
-
Five Ways to Adapt Your Charitable Giving Strategy in a Changing World: An Expert Guide
Economic uncertainty, global events and increasing wealth are shaping the charitable landscape this year. Here are the philanthropic trends and some tips that could help affluent donors optimize their impact.
-
I'm an Estate Planning Attorney: These Are the Two Legal Documents Everyone Should Have
Every adult should have a health care proxy and power of attorney — they save loved ones time, money and stress if a sudden illness or injury leaves you incapacitated.
-
The Truth About the Dark Side of Rooftop Solar Panels
Rampant bankruptcies in the solar panel industry have left many consumers with systems that don't work and no way to get them fixed. Worse, they're being hounded to keep paying despite not receiving what they were promised. What can they do?
-
Six Big Beautiful Opportunities: Advisers' Guide to Tax and Client Strategies
Here are several ways financial professionals can help their clients maximize opportunities in the One Big Beautiful Bill Act, which extends key TCJA provisions, introduces increased deductions for people 65 and older and more.
-
Five Ways to Maintain Charitable Giving During Volatile Times: A Giver's Guide
When the economic outlook is uncertain, charitable giving is even more important — and impactful. You can be strategic by using donor-advised funds, diversifying assets and prioritizing unrestricted gifts.
-
Avoid Medicare's 'Shadow Tax' With This Financial Expert's IRMAA-Busting Tips
You're cruising along in retirement, and then bam: Your Medicare premiums soar because your income crossed the limit. Take a breath. There could be a solution.
-
Grilling Season and ETFs: There's More Than One Way to Cook Up a Portfolio
Exchange-traded funds come in a multitude of 'flavors' these days, from passive to active to factor-based. Their flexibility is what makes them so delicious.