Finances for Recent Graduates

A recent SF Chronicle article by Kathleen Pender holds some good tips for recent grads.

She starts with her congratulations; then points out that all of that hard work has not given them a clue how to make note of when the first student-loan payment is due, calculate how much rent they can afford, or estimate probable take-home pay.

StudyBuddy has written many times of the importance of avoiding default on Student Loan payments, so be sure to pay attention to doing that first.  For Perkins loans, repayment begins after nine months. For Stafford or Parents Plus loans payment begins after six months or anytime you drop to half-time status. After 12 months you are in default and your credit-rating is ruined beyond help; so before that, make sure your lender knows where to send you a bill.  For more, go to finaid.org and search on Repayment.

A ball-park estimate on sustainable rent is a quarter of your gross pay.  Landlords can ask for an advance of one month’s rent and a security-deposit equivalent to rent for two months.  Some utilities may also require a deposit.

Take any health insurance offered.  If that’s none, go to www.ehealthinsurance.com to compare prices and get quotes.

Take good financial care of yourself!

For Pender’s complete text, see:

http://articles.sfgate.com/2011-06-12/business/29649210_1_rent-allowances-financial-basics

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~ by Jane Radcliffe on July 31, 2011.

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