Now is the time for recent college graduates to start stashing their dollars away toward repaying student loans. That's from Timothy Hayes, a financial planner for Landmark Financial Advisory Services. He says preparation is key in keeping away from compounding debt.
"They really have to have the mindset upon graduation and starting their careers that some of what they are earning has to be dedicated to the loan,” Hayes says. “That's simply not available for other spending or savings at that point."
Hayes says how much a student decides to put toward his or her loans is relative to their income and the repayment plan they've selected. According to the National Association of Colleges and Employers, the median salary for 2012 graduates is nearly 43,000 a year. Federal loan repayment begins in November.