Unfortunately, graduating with student loan debt seems to be an ever-increasing trend; and with college costs rising at two times the rate of inflation, it’s understandable. The trouble is, even with a steady job, high amounts of debt may be difficult for new graduates to handle.

A Different Path

For a lucky few who qualify for loan forgiveness, a good portion of their student loan debt can be swept away fairly quickly, but what about for everyone else? Some resourceful students who made it into a writeup on TheStreet.com have concocted new ways to pay off their college loans.

Several students are taking their loan problems to the web, where college graduates like Luke Livingston (www.sponsormyloans.com) and Derek Bender (www.helpmepaymyloans.com) have created websites to help them fund their monthly loan payments. While Bender hopes people will donate to his cause, Livingston is actually hoping for corporate sponsorship-$200 per month for ad space on his website which covers his monthly loan payment! (He was successful in January in securing an advertiser.)

Getting Creative

Student loan debt can be a big burden for new college grads, and it pushes many to figure out new, creative endeavors to meet the challenge of paying that monthly obligation. From working an extra job to moonlighting as a tutor, publishing a book to starting a small business, there are a myriad of ways to tackle those bills.

But the best way of all is to avoid debt from the start…

Beating the System

…and presumably, that’s why you’re here in the first place: to figure out how to minimize your out of pocket costs for college with as little debt as possible. It is feasible to minimize those student loans, but it takes planning! I spend a lot of time creating and implementing a personalized “roadmap” for my clients to help them fund college without having to give up retirement savings or take out a massive amount of education loans.

You can learn more about paying less for college by contacting me or by browsing through the archives here. I suggest you start with my post on getting tuition discounts, then learn about finding money for college in unexpected places, and finally check out the great ways to save money by using student discounts.

And even if you do end up needing to fill the college funding gap with some loans, you can potentially save thousands of dollars over the long term if you shop around to find the best discounts in interest rates and origination fees. Just make sure you read the fine print of your loan terms - between the government cutting lender subsidies and the current credit crunch that has trickled down to the student loan industry, the attractive loans may be harder to find.)

All the best,
Deborah Fox

Photo: Writing Check by Vangelis Thomaidis