Student Loan Dodgers

Leaving college with a mound of debt and trying to pay it back on an entry-level salary can leave a lot to be desired. If making ends meet isn’t a good enough reason to manage your borrowing in college, try this one on for size: the reality of loan repayment may prevent you from going into the field of your choice.

A study conducted by Public Interest Research Groups show that 37 percent of public university grads and 55 percent of private school grads face an unmanageable debt load, meaning that student loans would take more than 20 percent of their expected after-graduation salaries. As a consequence, these graduates may not be able to enter their chosen professions because they cannot afford to pay their loans back on the salaries they can reasonably expect to receive.

The problem is partially attributable to the high cost of college education and the limitations on financial aid. These factors often combine to force students to borrow to complete their degrees. Additionally, incoming students do little research on their chosen professions while in school to determine whether they can make a living in the fields of study they’re choosing.

Before declaring a major, students should fully research the employment potential of the fields they are considering, and should also research which fields are expected to be in demand over time. The Bureau of Labor Statistics makes 10-year employment predictions. Students can consult the BLS Web site for more information on employment projections. In addition to employment projections, the BLS also makes wage projections for hundreds of occupations.

Students should be leery of overly optimistic salary projections. Salary is often dependent upon region, so a student’s preferred location should also factor into the research.

If a low-wage occupation is still appealing, try to study at a public college or university. The overall costs here are often substantially lower than those at a private college. Examine 2-and-2 programs or 3-and-1 programs that combine community college and university studies. Attempt to finish a degree as quickly as possible to take advantage of lower tuition rates, and try to limit borrowing to Federally backed loan programs. With new loan regulations, your loans may be dischargeable after 10 years of service in certain public sector occupations, like social work, law enforcement, education, and rural or underserved health care delivery.