As a college graduate, you're probably focused on getting your first job, finding a nice place to live, and getting used to the "real world."
But if you graduated with a lot of debt, you should spend some time planning how to pay it off as soon as possible.
A recent study by the U.S. Department of Education found that 26% of college graduates borrowed at least $25,000 to pay for school.
"Many college graduates today have a lot of debt and don't know how to deal with it," said Dick Willey, president and chief executive officer of American Education Services, a national organisation that helps people get financial aid.
AES runs the website www.youcandealwithit.com, which is meant to help college students and recent graduates learn how to manage their money well. Here are a few suggestions from AES.
Consolidate. When you combine your loans, you may be able to lower your monthly payments and/or your interest rate. AES suggests that you look into this option as soon as possible to lock in a low interest rate. When you consolidate, you'll only get one bill each month, which makes it easier to keep track of your payments.
If you can, pay off your debt during the six-month grace period. This is a great way to save money on your subsidised loans because any payments you make will go straight to the principal balance. This reduces how much interest you'll have to pay after the grace period ends. You'll also be able to pay off your loan months sooner than you thought.
Pay your loans on time every month by setting up direct debit. Direct debit is a free automatic payment service for people who would rather pay their loans online. If you use this service, you may also be able to get a lower interest rate after making a certain number of payments on time.
Put the money you spend on everyday things toward paying off your loans. When you join Upromise, participating merchants will add a portion of what you spend with them to your Upromise account. You can then use this money to help pay off your AES-serviced loans.