Thousands of students graduated from college in May, a number of whom may be taking on new jobs or moving to a new city. In addition to their diploma, however, many of these individuals will be finishing school with large student debt bills.
In most cases, recent grads will have a six-month grace period before they must start repaying the loans. During this time, it's important for them to come up with successful strategies to keep this debt in order. Failure to make timely payments can result in bad credit, causing them further financial problems down the road.
The Mansfield News Journal recently shared a couple tips that may help grads better manage their student loan debt. One tip is to pay off the most expensive loans first in order to save money on interest charges. Grads should typically tackle private loans with variable interest rates first, as these rates may climb to overwhelming levels based on market conditions. The news source also recommends that consumers start paying off some of their student loan debt before their grace period ends in order to get a head start on their principal.
Recent grads may also benefit from checking their credit reports regularly to make sure their student loan payments are being reported accurately and fairly. If they spot a credit reporting mistake, they may want to contact a credit repair attorney to help them investigate and challenge the mark.