A Graduate's Guide to Paying Off Student Loans

Years ago I had attempted to put myself through college, and over the course of 20 years found that even part-time community college enrollment was beyond my budgeted paycheck. I enrolled numerous semesters part-time, attending classes after work. Ultimately I applied for, and received, Stafford student loans.

The interest rates were extremely low, and I had a job which afforded me the ability to pay back my loans. However back then books cost approximately $500.00 per semester (not including mandatory supplies) if carrying a full course load of 12 units. Enrollment fees were an additional expense of $150.00 to $250.00 every semester for residents.

Student Loan Repayment

Student loans do not generally become due or payable until after graduation, or the first semester you fail to re-enroll. Your financial aid department on campus has more information, and will help you apply for loans, grants and scholarships, based upon specific requirements and the term obligations attached to them.

Many students opted to stay in school, until graduation or longer, sometimes earning several degrees in the process of avoiding loan repayment. This isn't such a bad idea, as the more degrees you have guarantee better job prospects in the future.

I went back to school finishing coursework toward my first degrees (started 20 years prior) after paying off student loans in full, over a period of 15 years. As I reluctantly settled back into college life I began hearing about many new programs to help with enrollment fees, books, on-campus jobs, and student loan forgiveness programs, which had not been made available to me the first time around.

Student Loan Forgiveness

Many programs for student loan repayment offer creative ways to have your loans forgiven; work them off if you cannot afford to pay them back. Several years ago a popular program to have student loans forgiven (without repayment) was to teach in an economically challenged school district within your city or state.

However many of these school districts carried problematic stigmas, were in high-risk neighborhoods, and did not offer as much glamour as a new graduate might hope for in a first job. On the up side, not only was the student loan completely forgiven with a two-year teaching commitment, a new graduate was also drawing a livable wage from a secure teaching position.

There are many other programs available to college students, such as working on campus, as I did tutoring other students. Check online as well as in person, at your college financial aid office, to find out more about student grants, loans and scholarships.

Of course you can always make monthly payments until your loan is paid off, like I did. The low interest rate secures a lower monthly payment over the life of your student loan, and is a good investment in your future.