Student Loans: 5 Challenges a Student Borrower May Face after Graduation

When you first graduate from college, you may find your student loan bills immediately become a significant hurdle in your life. Some students have grace periods or elect to defer loans. These are both options, but they can lead to a greater expense in the long run. The challenges of paying off student loans in a timely fashion, especially initially, have to do with the extensive burdens placed on recent graduates.

#1 Lack of Income

Every student thinks they will get a job as soon as graduation passes. After all, students go to college in order to be qualified for the work force. In a good job market, many students will be able to secure jobs upon graduation in the field of their interest. However, when the market is slow, this can be a bigger challenge than many would expect. Some students go six months or a year without a full-time job in their field. Others will simply want to take the time off to travel or relax before entering the workforce. This is not an option with student loan debts to pay. You will have to take whatever job comes your way if you are facing loan deadlines.

#2 Low Income

If you do succeed in locating a job, the chances are you will be in an entry-level position. Some recent graduates in certain industries are given the opportunity to be involved in fast-paced, high-paying jobs. However, the majority of recent graduates will be entering an area where they will need to work their way up the salary ladder. Unfortunately, your loan payments cannot wait until you reach the top of the ladder. You will have to make the payments now, while you are already facing a financial crunch.

#3 Transitional Expenses

Many students do not realize the expenses associated with simply leaving school and entering the workforce. Most will have to move into a new apartment, home or other facility. This move can be across town or across the country, and the farther you move, the more it will cost. You will face car registration fees in a new city, perhaps be taking on your insurance payments for the first time, and you will even need to purchase items to set up your home, computer or other needs. Most students will also need to purchase a professional wardrobe, which can cost several thousand dollars even conservatively done.

#4 Other Financial Pressures

Even if you have accounted for these issues, there may be unforeseen financial pressures you have to answer to. For example, how would you react if you were offered the internship of your dreams but not offered any pay? Would you have the luxury of taking the position? If you have student loans, you will not likely have that chance. What if you would like to volunteer or travel upon exiting school? All of these questions need to be balanced against your obligation to repay your debts. Thinking long-term, simply deferring the loans indefinitely will end up compromising your financial stability in the future.


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