If you read the terms of your college loans, you can find out when your first payment becomes due. In many cases, graduates have approximately six months from the day that they graduate to start paying down their education related debts. That seems like a generous amount of time, but it takes a lot of college graduates several months to gain employment in their fields.
Attending Ohio University to study for a master of financial economics will likely give you access to financial aid and perhaps some generous grants and scholarships, but students studying a master of financial economics program also know that debt is a large component when personal wealth is calculated. These are the reasons that you should have a plan to address your student loan debts before they must be repaid.
Unpaid Student Loan Debt Compounds Interest Fast
It takes most people 20 years or so to pay back their student loan debts if they follow their repayment schedules perfectly. Taking any time off from repaying your student loan debts will cause the amount you pay to increase. Even if you end up getting approved for a forbearance, you’ll see your principal amount swell with more interest being added on. If you pay your loan after the grace period, there will be a late payment fee and likely other penalties as well. In short, you should have money set aside to pay your student loans debts, even if you aren’t able to work.
Carrying Too Much College Debt Will Mess Up Your Credit Rating
If you come out of college with an online master of financial economics degree and you are happy with the job that you land, you might want to start looking for a home to purchase. Unfortunately, all debts get calculated into the debt to income ratio used by mortgage companies when writing loans. You might learn that your student loan debt is preventing you from being able to buy a home or is causing you to pay a higher rate of interest on your home loan. The best thing that you can do is to get your student loan debt balances lower before you look to purchase any type of real estate.
Not Knowing How You Will Repay Your College Loans Will Leave You Stressed Out
Student loan debt is the number one reason that college graduates end up living with their parents for years after graduation. If you want to live in a city where there are plenty of good paying jobs in your area of focus, but you can’t afford to pay your student loans as well as pay for housing, you may end up in a catch-22 situation. Don’t let the stress of student loan stress make you feel like your future options are limited. Begin paying your student loans before your first repayment due date.
If you are expected to graduate college in a couple of years, it might feel like you have enough time to find employment and manage your student loan debts. In reality, getting a job while still in school can help you to avoid paying thousands in interest, while also helping you to secure a better credit score. Find whatever ways you can save money during college so your student loan load doesn’t become a long-term burden.