More College Students Than Ever are Graduating in Debt

There was a time when a college education was relatively affordable but that is no longer the case. The cost of a four year degree can often range between 40 and 80 thousand dollars and these figures continue to increase. In fact, the annual rise in educational expenses far exceed the pace of inflation. In the face of such bleak financial reality many students have resorted to taking out educational loans. In the short run they enable the student to obtain an education in their desired field of study. However, in the long run these loans often turn into huge financial burdens that follow the student well into their professional careers. What can be done to reduce these excessive debts as quickly as possible.

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One way to make eliminating debt an easier task is to decrease the total amount of borrowed money. This can be done in a variety of way.

Measures to Reduce the Levels of Student Debt

Investigate co-op programs. These programs allow a student to rotate between full time college studies and full time work for a company in their field of study. The money earned while participating in a co-op program will help offset the cost of education.
Work part time. This will help pay for a portion of the expenses. It may take longer than 4 years to obtain a degree (depending on how much you are working) but it would decrease the need for student loans.
Look at school alternatives. Consider attending a local school or community college. These institutions are generally much more affordable, and the credits can be transferred.
Apply for grants and scholarships. Nothing beats free money. There are many funds available for a wide variety of qualifications. Do not assume that you have to be an academic (or athletic) all star to qualify.

Suggestions to Pay Off Student Debt

Begin paying as soon as possible. Many student loans have deferment options. It is very tempting to delay the payments until sometime down the road. However, the loan keeps accruing interest which makes the debt continue to grow.
Consolidate Student Loan Debt. Now is the time to take advantage of some outstanding interest rates. Programs are available to put all of your educational loans together, producing a single monthly payment. Any payment made above the minimum goes towards the principle.
Take advantage of tax write offs. In most cases a portion of student loan interest is tax deductible. If this results in a refund, earmark that money to go towards the debt.
Delay major purchases. This is not a popular alternative but none the less it makes sound financial sense. Put the new car or house on hold for a few years and concentrate on paying off your debt.

The increasing costs of a college education is not a trend that is likely to reverse. As a result it may become a necessity for many students to resort to student loans. When this happens it is in an individual. s best interest to keep the loan amounts as low as they can. After graduation students can help themselves by taking measures to pay down the debt as soon as possible.

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About the author:

Mark Carney is a professional consultant with First American Debt Consolidation and Loans, a debt consolidation service specializing in financial education, credit counseling, and debt management services nationwide.