On average, recent college grads will have $37,000 in student loans accumulated.
Wright State University student Karl Banks said he’ll owe $20,000 when he gets his diploma.
“It’s not too bad compared to the national average, but it is still a lot of debt burden to have, especially as a struggling college student and not being sure if you are going to secure a job,” Banks said.
There are three key recommendations recent grads should follow, according to Josh Lake, private wealth advisor and owner of Lake Group Ameriprise Financial in Kettering.
“Consolidate the loans they have down into lower interest rates that are more maintainable. If they can, consider paying a little bit extra—pay themselves first— so they can pay down on the principal on those student loans. Don’t get themselves further into debt, so stay away from store cards or anything that might actually add more liabilities to them,” Lake said.
Consumer expert Clark Howard has additional recommendations:
- -never borrow more for a four year degree than the entry level salary of your job after graduation.
- -consider doing the first two years of your studies at a community college.
- -never borrow any private student loan money. Pick a cheaper school or work your way through college.
Banks said he’ll start paying down his student loans right after graduation.
“It’s one thing I want to get off my plate as soon as possible, so I can look forward to the future,” Banks said.
Rachel Murray is a WHIO-TV consumer reporter. You can watch her reports on News Center 7, follow her on Twitter @RMurrayWHIO, and like her fan page on Facebook.
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