Congratulations, Class of 2018 graduates!
Hopefully, you’ve spent the past few weeks celebrating your achievements. But now you’re probably wondering, “What’s next?”
To help you prepare, we chatted with recent college graduates (Class of 2017 and earlier) about their experiences since graduating.
Here are the life lessons they learned, along with the advice they wish someone had told them after college.
1. Prepare for a long job search
Jazmin Cybulski is a content writer for Bella Ella Boutique, where she writes about fashion, lifestyle, and other topics. But it took her almost two years to land this role after graduating from Brigham Young University with a degree in English literature.
“I graduated in August 2016 and didn’t land my job at Bella Ella until March 2018,” said Cybulski. “So, it’s been quite a time since I graduated from college.”
During those two years, Cybulski had two main jobs: freelancing and searching for full-time work.
“The job search has to become your full-time job (40 hours a week of applications) if you want to get a job ASAP, and even then, it may take longer than you’re expecting,” said Cybulski. “You’re going to go to a lot of interviews. Some you might feel like you killed it and you might have actually blown it in your interviewer’s eyes, and vice versa.”
Through it all, Cybulski encourages new graduates not to feel discouraged.
“The first year out of college is harder than most people make it out to be,” she said. “But don’t let it get you down. Instead, let it fuel you.”
2. Build your network
You and your college friends might move to different cities after graduating, but do your best to stay in touch. Not only is it important to maintain friendships, but it’s also useful to build your professional network.
Jason Patel, the founder of college consulting company Transizion and a Class of 2014 graduate of George Washington University, tells new graduates to “always be networking.”
“Don’t think of networking as a chore; think of it as a muscle,” said Patel. “The more you use it, the better you get at it.”
You might join alumni groups or connect with others in your industry at conferences or through LinkedIn. According to The Adler Group, 85% of all jobs are filled through networking.
Taking the time to make connections can help you find the right role and grow your career down the road.
3. Save up for an emergency fund
Unexpected emergencies happen, so it’s important to create an emergency fund to cover costs. Most experts recommend saving enough to cover living expenses for three to six months.
Although it can be tough to save that much, setting aside a small amount of money from each paycheck will add up over time.
Marissa Connell, who graduated from Loyola University Chicago in 2016 with a degree in public relations, said her best advice for new graduates is, “Save, save, save.”
“I would encourage any recent grad to save as much as possible (within reason),” said Connell. “Small saving moves add up to a much easier future.”
To accomplish your savings goals, make a budget and look for areas where you can cut back. If you often eat out for meals, consider cutting back. Make eating out a treat rather than a habit.
To increase your income, you could also pick up a part-time job or start a side hustle. Or you could slash your expenses in a major way by moving back in with your parents for a time.
How you save is up to you. But building your savings will set you up for a more secure future.
4. Start repaying your student loans
The average Class of 2017 graduate is no stranger to student loans. In fact, they left school owing an average $39,400.
That’s why Rachel Kampersal, who graduated from Roger Williams University in 2017 and works at American Consumer Credit Counseling, encourages new graduates to prioritize student loan repayment.
“It’s important to repay your student loans ASAP,” said Kampersal. “Pay off as much as you can while you’re young and have less expenses (i.e., mortgage, children, etc.) than you will in the future.”
As you make timely payments on your student loans, you’ll build credit.
“Make sure you understand all your repayment options and make the right decision for you,” said Kampersal. “Establish a plan to set aside money each month for your student loans.”
If you can make extra payments, you can save on interest and get out of debt ahead of schedule.
5. Take advantage of a 401(k)
Planning for retirement might not feel like a priority when you start your career. But Dennis McNamara, a Class of 2011 Rutgers University graduate and a financial planner at Lighthouse Financial Advisors, encourages new grads to take advantage of their company’s 401(k). A 401(k) is an employer-sponsored retirement account.
“Don’t only participate, do your absolute best to contribute at least 10% of your salary,” McNamara advised. “Fifteen percent is the ultimate goal!”
The sooner you can start saving for retirement, the better off you’ll be. That’s because compounding interest helps your balance increase over time.
It’s especially important to save if your employer offers a company match. If your employer offers a 3% match, for instance, make sure you’re contributing at least 3% of your paycheck into your 401(k).
As McNamara said, saving more than that will lead to a much bigger nest egg.
6. Don’t spend too much on rent
“When budgeting for rent, the rule of thumb is to spend no more than 30% of your monthly gross income on monthly rent and utility expenses,” said McNamara. “Do not forget about utilities — these can easily add $200-plus to your monthly expenses.”
McNamara advises new graduates to stick to this rule so they have room in their budget for other goals.
However, the cost of rent is higher than ever. If you live in a big city, it’s difficult to follow the age-old rule of spending one-third or less of your monthly income on rent.
To cut costs, consider moving to a less expensive area or sharing space with a roommate or two.
“It is highly recommended to consider sharing space with a roommate to split these expenses,” said McNamara. “By doing this, one can save hundreds (even thousands) of dollars over the course of a year simply by splitting rent, utilities, [and] miscellaneous apartment expenses.”
7. Be patient as you work toward your goals
“We all have big dreams about our career, our living situation, and finances when we get out of college,” Connell said. “I’m here to say that these things take time.”
Although you might feel impatient waiting for everything to fall into place, accomplishing your goals takes time.
“Be OK with having things that aren’t your dream for the moment, like a smaller, slightly less convenient apartment or the job that isn’t your dream position,” she said. “Keep yourself in the mindset that you are working towards better things and it won’t be this way permanently.”
You also need to be careful not to compare yourself to others. Don’t assume everyone else is doing better than you.
“It can be easy to get discouraged, but you’re not falling behind anyone,” Connell said. “Trust me.”
The first year out of college is challenging for everyone. Over time, you’ll have the wisdom and experience to define your financial goals and pursue the career you truly want.
Interested in refinancing student loans?Here are the top 7 lenders of 2019!
|Lender||Variable APR||Eligible Degrees|
|Check out the testimonials and our in-depth reviews!
1 Important Disclosures for Earnest.
To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.
Earnest fixed rate loan rates range from 3.45% APR (with Auto Pay) to 6.99% APR (with Auto Pay). Variable rate loan rates range from 1.81% APR (with Auto Pay) to 6.49% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of November 6, 2019, and are subject to change based on market conditions and borrower eligibility.
Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.
The information provided on this page is updated as of 11/06/2019. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at firstname.lastname@example.org, or call 888-601-2801 for more information on our student loan refinance product.
© 2018 Earnest LLC. All rights reserved. Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America.
2 Important Disclosures for SoFi.
3 Important Disclosures for Laurel Road.
Laurel Road Disclosures
Laurel Road is a brand of KeyBank National Association offering online lending products in all 50 U.S. states, Washington, D.C., and Puerto Rico. Mortgage lending is not offered in Puerto Rico. All loans are provided by KeyBank National Association.
ANNUAL PERCENTAGE RATE (“APR”)
There are no origination fees or prepayment penalties associated with the loan. Lender may assess a late fee if any part of a payment is not received within 15 days of the payment due date. Any late fee assessed shall not exceed 5% of the late payment or $28, whichever is less. A borrower may be charged $20 for any payment (including a check or an electronic payment) that is returned unpaid due to non-sufficient funds (NSF) or a closed account.
For bachelor’s degrees and higher, up to 100% of outstanding private and federal student loans (minimum $5,000) are eligible for refinancing. If you are refinancing greater than $300,000 in student loan debt, Lender may refinance the loans into 2 or more new loans.
ELIGIBILITY & ELIGIBLE LOANS
Borrower, and Co-signer if applicable, must be a U.S. Citizen or Permanent Resident with a valid I-551 card (which must show a minimum of 10 years between “Resident Since” date and “Card Expires” date or has no expiration date); state that they are of at least borrowing age in the state of residence at the time of application; and meet Lender underwriting criteria (including, for example, employment, debt-to-income, disposable income, and credit history requirements).
Graduates may refinance any unsubsidized or subsidized Federal or private student loan that was used exclusively for qualified higher education expenses (as defined in 26 USC Section 221) at an accredited U.S. undergraduate or graduate school. Any federal loans refinanced with Lender are private loans and do not have the same repayment options that federal loan program offers such as Income Based Repayment or Income Contingent Repayment.
All loans must be in grace or repayment status and cannot be in default. Borrower must have graduated or be enrolled in good standing in the final term preceding graduation from an accredited Title IV U.S. school and must be employed, or have an eligible offer of employment. Parents looking to refinance loans taken out on behalf of a child should refer to https://www.laurelroad.com/refinance-student-loans/refinance-parent-plus-loans/ for applicable terms and conditions.
For Associates Degrees: Only associates degrees earned in one of the following are eligible for refinancing: Cardiovascular Technologist (CVT); Dental Hygiene; Diagnostic Medical Sonography; EMT/Paramedics; Nuclear Technician; Nursing; Occupational Therapy Assistant; Pharmacy Technician; Physical Therapy Assistant; Radiation Therapy; Radiologic/MRI Technologist; Respiratory Therapy; or Surgical Technologist. To refinance an Associates degree, a borrower must also either be currently enrolled and in the final term of an associate degree program at a Title IV eligible school with an offer of employment in the same field in which they will receive an eligible associate degree OR have graduated from a school that is Title IV eligible with an eligible associate and have been employed, for a minimum of 12 months, in the same field of study of the associate degree earned.
The interest rate you are offered will depend on your credit profile, income, and total debt payments as well as your choice of fixed or variable and choice of term. For applicants who are currently medical or dental residents, your rate offer may also vary depending on whether you have secured employment for after residency.
The repayment of any refinanced student loan will commence (1) immediately after disbursement by us, or (2) after any grace or in-school deferment period, existing prior to refinancing and/or consolidation with us, has expired.
POSTPONING OR REDUCING PAYMENTS
After loan disbursement, if a borrower documents a qualifying economic hardship, we may agree in our discretion to allow for full or partial forbearance of payments for one or more 3-month time periods (not to exceed 12 months in the aggregate during the term of your loan), provided that we receive acceptable documentation (including updating documentation) of the nature and expected duration of the borrower’s economic hardship.
We may agree under certain circumstances to allow a borrower to make $100/month payments for a period of time immediately after loan disbursement if the borrower is employed full-time as an intern, resident, or similar postgraduate trainee at the time of loan disbursement. These payments may not be enough to cover all of the interest that accrues on the loan. Unpaid accrued interest will be added to your loan and monthly payments of principal and interest will begin when the post-graduate training program ends.
We may agree under certain circumstances to allow postponement (deferral) of monthly payments of principal and interest for a period of time immediately following loan disbursement (not to exceed 6 months after the borrower’s graduation with an eligible degree), if the borrower is an eligible student in the borrower’s final term at the time of loan disbursement or graduated less than 6 months before loan disbursement, and has accepted an offer of (or has already begun) full-time employment.
If Lender agrees (in its sole discretion) to postpone or reduce any monthly payment(s) for a period of time, interest on the loan will continue to accrue for each day principal is owed. Although the borrower might not be required to make payments during such a period, the borrower may continue to make payments during such a period. Making payments, or paying some of the interest, will reduce the total amount that will be required to be paid over the life of the loan. Interest not paid during any period when Lender has agreed to postpone or reduce any monthly payment will be added to the principal balance through capitalization (compounding) at the end of such a period, one month before the borrower is required to resume making regular monthly payments.
KEYBANK NATIONAL ASSOCIATION RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE.
This information is current as of November 8, 2019 and is subject to change.
4 Important Disclosures for Splash Financial.
Splash Financial Disclosures
Terms and Conditions apply. Splash reserves the right to modify or discontinue products and benefits at any time without notice. Rates and terms are also subject to change at any time without notice. Offers are subject to credit approval. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet applicable underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates are reserved for the highest qualified borrowers.
5 Important Disclosures for CommonBond.
Offered terms are subject to change. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900). If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown. All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 1.9299999999999997% effective October 10, 2019.
6 Important Disclosures for LendKey.
Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments. The lowest advertised variable APR is only available for loan terms of 5 years and is reserved for applicants with FICO scores of at least 810.
As of 11/07/2019 student loan refinancing rates range from 1.90% to 8.65% Variable APR with AutoPay and 3.49% to 7.75% Fixed APR with AutoPay.
7 Important Disclosures for College Ave.
College Ave Disclosures
College Ave Student Loans products are made available through either Firstrust Bank, member FDIC or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.
1College Ave Refi Education loans are not currently available to residents of Maine.
2All rates shown include autopay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. Variable rates may increase after consummation.
3$5,000 is the minimum requirement to refinance. The maximum loan amount is $300,000 for those with medical, dental, pharmacy or veterinary doctorate degrees, and $150,000 for all other undergraduate or graduate degrees.
4This informational repayment example uses typical loan terms for a refi borrower with a Full Principal & Interest Repayment and a 10-year repayment term, has a $40,000 loan and a 5.5% Annual Percentage Rate (“APR”): 120 monthly payments of $434.11 while in the repayment period, for a total amount of payments of $52,092.61. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
Information advertised valid as of 09/23/2019. Variable interest rates may increase after consummation.
|1.81% – 6.49%1||Undergrad & Graduate|
|2.31% – 7.36%2||Undergrad & Graduate|
|1.99% – 6.65%3||Undergrad & Graduate|
|2.43% – 7.60%4||Undergrad & Graduate|
|2.02% – 6.30%5||Undergrad & Graduate|
|1.90% – 8.65%6||Undergrad & Graduate|
|2.74% – 6.24%7||Undergrad & Graduate|