Why new grads shouldn’t fear a recession
Massive tech layoffs, bank failures and a potential U.S. recession could throw a wrench in the plans of 2023 graduates — in the same year federal student loan payments are expected to resume and accrue interest
In 2023 alone, there have been over 118,000 U.S. tech layoffs, according to Crunchbase News, a business publication. That’s in addition to two major bank collapses and two federal rate hikes. The class of 2023 will graduate into this economic upheaval while facing another variable: student loan payments.
This can be an overwhelming and confusing time for those set to begin repayment of student debt, says Barry Coleman, vice president of program management and education at the National Foundation for Credit Counseling . Coleman cites the expected end of a three-year pause on federal student loan payments, legal challenges to federal student debt relief programs and the potential impact of inflation on the job market as reasons new graduates could feel uneasy.
But new grads don’t need to panic. Here’s how they can weather a potential recession and the financial uncertainty that might come with it.
HAVE A PLAN FOR YOUR STUDENT LOANS, NO MATTER THE ECONOMY
