Managing Student Loans

Students plan well in advance for a college education, searching for finance and taking on high levels of loans. Yet around half of all those who enter college with the aim of obtaining a degree fail to complete college to graduation, and are still required to repay the loans they assumed. Many students also gravitate to degree courses which are arts based and offer little hope of a career which will carry a salary to facilitate ease of loan repayments. Where once education was seen as more than just a path to a high paying job, it is sadly no longer practical to enter college to obtain an education for educations sake.

Students should think long and hard to consider if the cost of a college education is worth it for them. There are other ways to study for those who do so in the thirst for knowledge which may have no practical application at the end. With the average debt upon graduation now reaching $24,000 many are burdened with debt they can ill afford unless they have made provision beforehand by planning how they will deal with the debt upon graduation.

Those who have a specific profession in mind need to incur additional debt by studying as a post graduate. However certain professions offer the opportunity to repay the debt through either high salaries or special federal government programs which will repay a portion of the debt annually. Excellent provision is made for those planning to work as rural veterinarians. Dentists, doctors and other health professionals also have excellent government schemes which will help to repay their debts quickly.

Those who plan to enter public service in roles such as public defenders or prosecutors, teaching and nursing also have schemes available to assist, but each of these government backed forgiveness programs requires early application and a willingness to work in undersubscribed areas. It is important to consider if a planned profession has a program in place which will allow you to clear debt early whilst gaining practical work experience.

Other options open to students are volunteer service positions which will pay a lump sum towards student debt. Students with a specific profession in mind should approach companies regarding any assistance they will offer repaying student loans if the student is accepted as an employee. It could well be worth volunteering to work through the summer in such companies to show commitment. It is even better if arrangements can be made for a company to sponsor a student and assist with tuition costs in return for a commitment for the student to work for the company upon graduation.

Without some kind of advance provision in place to deal with student loan debt upon graduation students can flounder and face financial difficulties. Requesting deferments to ease the pain of repayment only allows the debt to grow and should not be used unless for emergency situations. It is not a sound financial move to use deferment as a method of dealing with loan debt.

If you are planning a college education consider long and hard about provisions to pay back the loan debt. Assuming that everything will fall into place and come up roses is an expensive financial mistake to make and could cost you dearly over the years.