Community colleges, technical/vocational schools and traditional universities all promote the idea that post graduation job = enough to live comfortably = pay back college loans. Before embracing excessive college loans, assess entry-level salaries for your intended major. Students who have no alternate way to pay for college should avoid taking out more than one year of their expected salary. If you plan on teaching and expect to earn $35,000, then your total college loans should be less than $35,000. One loan forgiveness program for teachers offers up to $5,000 after five consecutive years of teaching full time in low income schools.
Basics
Although it is not mandatory, you can pay interest on student loans while in school. View credit cards as college loans with lower amounts. Be cautious about your spending by eliminating credit card debt or you will be paying for freshman year 10 years after graduation. Also, strategically spend your time during summer and winter vacations. While unpaid internships offer amazing experiences, find a paid part time job to bolster your savings. For instance, set a goal to earn enough money during summer vacation to pay for books so you lower your loan amount. Consider state programs, like the Maryland State Scholarship Administration, which assists government employees in paying for their education. Explore tuition reimbursement programs that your employer may offer.
Post-College
Upon graduating, most students have a six month grace period before loan payments must begin. Current payment options include standard, income based or graduated schedules. If you are employed, yet unable to make your payments, take a second job---even in an unrelated field. Student loans differ from other common types of debt, like mortgages and medical expenses, in that bankruptcy will not eliminate your obligations.
Loan Forgiveness Programs
Students interested in public service careers should evaluate college loan forgiveness programs, which help students pay back loans in exchange for certain commitments. For instance, the Army's College and Navy's Loan Repayment Programs pay up to $65,000 for full-time service. The Air Force College Loan Repayment Program extends $10,000 to recruits. The National Institute of Health offers a maximum of $70,000 when researchers work at least 20 hours per week. Volunteering through the Peace Corps, AmeriCorps and the National Civilian Corps also serves as a way to pay back loans in exchange for service. Currently, Perkins and Stafford loans may be forgiven up to 100% if you provide full-time service, such as in low-income communities.
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