College graduation day is one of the most self-fulfilling days in the life of any college graduate! After four years, possibly more, of hard work, sleepless nights, endless exams and constant study all of your hard work and dedication realize into an 11’’x8’’ university diploma.

However, every college student who graduates with student debt also knows that graduation can be a bitter sweet experience. On the one hand you have a piece of paper that you have worked hard for and which may hold the key to landing the “perfect job” you have always wanted. On the other hand you can’t help but reflect on the fact that you are now also starting your career with a negative income statement and will have to worry about how you are going to pay off student loans.

Let’s be honest, today’s graduates are entering the toughest labor market in the last 25 years. To say that today’s graduates are experiencing a tough labor market is a massive understatement. Unfortunately for those that graduate with student debt, repayment of student loans can start as early as 6 months after graduation. With no job to pay off student loans a new set of challenges are presented!

Unfortunately, the problems don’t end there for graduates with student debt. Those graduates that will want to pay off student loans as quickly as possible will run across yet another hurdle – lower entry-level salary’s.

In an article titled The Curse of the Class of 2009, The Wall Street Journal recently reported that “for each percentage-point increase in the unemployment rate (deep recession of 1980’s), those with the misfortune to graduate during the recession earned 7% to 8% less in their first year out than comparable workers who graduated in better times. The effect persisted over many years, with recession-era grads earning 4% to 5% less by their 12th year out of college, and 2% less by their 18th year out”.

According to the U.S Department of Labor, as of July 2010 the current unemployment rate in the United States is 9.5%. This is devastating news for anyone who graduated within the last 5 years. Lower wages accompanied by a steadily increasing cost of living, especially in major metropolitan areas, are the perfect recipe for financial fallout amongst graduates with student debt. Sp  are there other for paying student loans back?

3 Alternatives for Paying Student Loans And My Choice!

You really don’t have much of an option when it comes to paying back student loan debt. You either pay them back willingly or the government garnishes your wages. The only way to get out off paying back your student loans is in the unfortunate circumstance of your death. I am sorry to say it but it’s really that bad when it comes to Student Loans.

Below is a list of options you have to pay back your student loan debt, or at least reduce the amount you owe. The first 3 are options for every one. You have to be a little special (in a good way) to leverage the 4th option.

1. AmeriCorps – By joining AmeriCorps, a corporation for national and community service that addresses major issues such as education, health, poverty and other social pressing issues, you can qualify for student loan forgiveness in the form of the Segal AmeriCorps Education Award.
2. Teach for America – By joining Teach for America, an organization that strives to close the achievement gap in communities nationwide, you qualify for student loan forgiveness in the way of grants and additional options such as student loans forbearance during your term of service.
3. U.S Military – By becoming service member of the United States military you are eligible for student loan forgiveness which is paid by the U.S government in accordance with the number of years you enlist in service.
4. Become An Entrepreneur- Although the options listed above are good alternatives for the manner in which student loans can be paid off, not everyone can afford to put their life on hold for up to 5 years. The entrepreneurial way is not only an excellent way to pay off student loans. It’s an excellent way to invest in yourself, earn multiple streams of income and educate yourself on the Wealth Secrets that school failed to teach you!

I encourage you to reach out and contact me IF you believe that the entrepreneurial way may be for you. Allocating some of the income from your one (1) bi-weekly paycheck will eventually pay off you student loans. But why not generate 5, 10 or even 15 streams of income to be Student Debt free within a few years?

Related posts:

1. Student Loans | Why Life After College is not Ideal for Most!