For most college students, graduating with student loan debt is a grim reality.
Nationally, about seven in 10 college seniors who graduated from public and private nonprofit colleges in 2015 had student loan debt, according to the most recent statistics available from the Institute for College Access and Success. Those graduates owed an average of $30,100.
We spoke with three recent graduates who offered advice for incoming students as they navigate the student loan gauntlet. Making sure you have a good grasp on the types of student loans you’re taking out, evaluating r eturn on i nvestment and knowing what your total debt will look like can go a long way to ward mak ing repayments — when they inevitably come due — more bearable.
“My suggestion is for students to really take a look at their finances when they’re in school so when they graduate they’re not shocked at how much money they owe,” says May Bumar, a 2016 graduate of Northeastern University in Boston.
[Get tips to start student loan repayment off right from the start.]
Desiree Marty, 23
Marty graduated from the University of Wisconsin–Platteville in May 2016 with about $28,000 in student loan debt but stuck to taking out only federal loans by working three part-time jobs and taking a full load each semester.
She recommends steering clear of private loans, which can have skyrocketing interest rates and less forgiving repayment options than federal loans.
Her loan payments are about $300 a month, and while she wasn’t “completely blindsided” when they came due, she says she wishes she would have had a better sense of those monthly loan payments when they hit after graduation. She says she doesn’t remember getting much financial aid education from the university, a topic she was interested in as a business and finance major.
“I knew six months after you graduate, you start paying back student loans,” she says. “OK, what does that exactly mean? Just knowing ahead of time, what that payment would be like.”
[See how to avoid turning into a scary student loan statistic.]
Jess Riffle, 23
Riffle graduated from DePaul University in Chicago in spring 2016 with about $30,000 in student loan debt, not including parent PLUS loans that her mom took out.
She says while she doesn’t regret her loans, she recommends focusing on the “return on investment,” or a student’s earning potential based on the course of study and college he or she choose s.
“My advice that I would give is don’t be afraid of the loans, be afraid of the [Return on Investment] and the school and the program that you’re going into,” she says.
Riffle, who graduated with a degree in advertising and public relations with a minor in social media, says she would have liked to study anthropology but knew she would have to go on for a graduate degree to make a living. She wanted a career where she could immediately begin paying the bills.
“Make your passion your weekend project and find something that keeps you alive the rest of the time, at least until you pay off your loans — or scale your expectations,” she says.
[Check out three surprising student loan repayment facts.]
May Bumar, 24
Bumar graduated with about $25,000 in student debt, including a parent PLUS loan that her mom took out.
Bumar, whose parents were refugees from Thailand, is a first-generation college student. Bumar says living at home and attending a community college, before transferring to Northeastern, helped her save a bundle of money.
With parents who didn’t know much about the college application process, she was able to get help applying for the Free Application for Federal Student Aid and comparing financial aid packages through an organization called uAspire.
She says community college was one of the biggest advantages when she transferred, “because I saved a ton of money on classes.”
Bumar suggests that students pay close attention to the types of loans and interest rates, noting that some loans — unsubsidized loans and loans from private banks — can begin accruing during school.
“Every year, the accrued interest just keeps adding and adding. It doesn’t go to sleep,” she says. “Interest can be thousands of dollars depending on what kind of loan you took out.”
Trying to fund your education? Get tips and more in the U.S. News Paying for College.
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3 Recent College Grads Share Student Loan Tips originally appeared on usnews.com
