I’m worried about graduating and not finding a job. What about my student loans? What would be the best suggestions? I know I should start paying them off now, but it’s hard being a single parent.
A: Begin now to take control of your cash flow by setting up a spending plan. Use your checkbook register and list your expenses for the last six to 12 months. Divide your expenses between “requirements” (basic necessities), “needs” (what you need to get by) and “wants” (what you would like to have but could live without). Pay yourself first by trying to set aside a small amount each month in a savings or money market account, and begin to build an emergency cash reserve. Then when you begin your job hunt, you will know what you can accept in order to provide for yourself and your child. Don’t be discouraged by the employment picture often painted in the media. Colorado is in a better position than much of the rest of the country, and although economic growth is likely to be anemic for some time, that just means we may have to work harder. Those who look for opportunities are likely to find them. In the meantime, upon graduation, you may qualify for a loan consolidation, deferral or forbearance. Consolidation of loans may allow you to lower payments and the interest rate you are charged. Forbearance allows you to stop making payments for a period of time (while interest continues to accrue). Deferment allows you to avoid payments for a specified period of time due to hardship or unemployment. You can obtain information on these options from your lender. Here are some good sources of general information on student loans:
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Ray Benton is an investment advisor with Lincoln Financial Advisors.
