Press release from Business Wire
Sallie Mae Provides Money Management Check List for New College Graduates
Thursday, May 09, 2013
Sallie Mae Provides Money Management Check List for New College Graduates11:17 EDT Thursday, May 09, 2013
NEWARK, Del. (Business Wire) -- This academic year, an estimated 1.8 million undergraduates will walk across the stage to receive their bachelor's degrees. Hiring is expected to rise about 2 percent over last year, and the average starting salary for Class of 2013 college graduates is likely to increase by 5 percent, according to research from the National Association of Colleges and Employers.
“The first few months after graduation offer an important opportunity to build a professional network, begin a new career, and lay the foundation for savvy financial habits,” says Patricia Nash Christel, vice president, Sallie Mae. “This is a time to pay close attention to your finances and make smart decisions that can translate into a higher credit score and a solid financial future.”
Sallie Mae offers these timely tips for Class of 2013 graduates:
- Create a budget. Plan for your financial well-being by setting up a monthly budget before you select an apartment or make large purchases such as a car. Consider living at home or with roommates to keep expenses low.
- Pay bills before due dates. Making payments on time can help build and maintain a good credit rating — and avoid the extra expense of late fees. Consider having bill payments automatically deducted from your bank account to ensure on time payments.
- Stay a step ahead of student loans. If you borrowed money to pay for college create a list of your loans and notify your loan servicers of your new address. Most federal loans and private loans provide six months of transition time after graduation before your first full payment is due. Consider starting payments a little early to pay less in the long run.
- Get cash back when you need to spend. Join Upromise by Sallie Mae to earn cash back to help pay down eligible Sallie Mae-serviced student loans. You can invite family and friends to join Upromise and contribute to your account.
- Think about your health. If you were covered by a student health plan, make sure you maintain coverage as you leave school. Many insurers now permit you to stay on your parent's health insurance plan until age 26, and it is required by law starting in 2014. For those who need a temporary solution, Sallie Mae offers short-term medical insurance to bridge the gap between graduation and employer-sponsored coverage.
- Protect yourself from the unexpected. If you are moving to a new apartment, renters insurance is an affordable way to protect your personal belongings while providing personal liability protections.
- Don't wait to start saving. Start building a rainy day fund in case of unpredictable circumstances and aim to save $500-$1,000. Put saving on autopilot with an automatic deduction and save in small amounts each month which can add up to give you peace of mind. In addition, while retirement may seem like a long way off, don't put off signing up for your employer's 401(k) program, especially if you qualify for a match.
Online resources designed to help new college graduates take control of their financial futures are available on the personal finance site Wise Bread at a “New Graduate Help Center” sponsored by Sallie Mae and at CollegeAnswer.com. Articles span a variety of topics that help recent college grads find jobs, manage their finances, and pay off student loans.
Sallie Mae (NASDAQ: SLM) is the nation's No. 1 financial services company specializing in education. Celebrating 40 years of making a difference, Sallie Mae continues to turn education dreams into reality for American families, today serving 25 million customers. With products and services that include 529 college savings plans, Upromise rewards, scholarship search and planning tools, education loans, insurance, and online banking, Sallie Mae offers solutions that help families save, plan, and pay for college. Sallie Mae also provides financial services to hundreds of college campuses as well as to federal and state governments. Learn more at SallieMae.com. Commonly known as Sallie Mae, SLM Corporation and its subsidiaries are not sponsored by or agencies of the United States of America.
Debby Hohler, 617-454-6741