It’s officially Spring. With spring comes a feeling of revival and a promising future is in the air. For many college seniors, their time as a student is coming to a close. They will take their last finals, turn in their last papers, get recommendations from professors for jobs or graduate school and make lasting memories with their friends. It’s an amazing time. However, reality comes soon after they turn the tassel at their commencement ceremonies.
The rising cost of higher education in California and the country is no laughing matter. Even public schools, like those in the California State University and University of California systems, can run young adults upwards of $20,000 a year to attend.
So as college tenures come to an end, it’s important that graduates get on the road to financial stability.
Review your student loans
If you are a college graduate, one important step is to ensure that you understand the terms of any student loans you have. Both federal and private student loans permit some deferment periods as you enter into the workforce or if you choose to obtain an advanced degree. If you are job hunting, keep in mind that federal loans do offer loan forgiveness if employed by a government or nonprofit organization for more than 10 years. You also will need to make regular payments as you build your tenure within such an organization.
If you are seeking an advanced degree, be very conservative with any additional loans you choose to take out. Obtaining more education to better prepare you for your career choice is commendable, however, the deferred undergraduate loans may acquire interest as you study.
Keep your expenses low
If you are looking to move away from your hometown, consider moving in with roommates or family to save money as you build your career. Many entry-level jobs pay lower than you would expect and the cost of living continues to rise. Saving $800-$1,000 a month or more over 2-3 years of your career can make a big impact when the time comes to make a large purchase such as a new car.
Lastly, we know “gap years,” where a new graduate takes time off between school and work or undergraduate study and graduate study, are increasingly popular. Malia Obama even took one! Keep in mind the added expenses of this, including travel costs, loans that may not qualify for deferment, storage of your personal possessions and health care costs to name but a few. New graduates absolutely deserve time to celebrate such a great achievement, but doing so within your financial means sets you up for more success as you follow your dreams!
Congratulations to the class of 2018!