For graduating students set on entering the “real world” and potentially setting themselves free from the rigors of the academic lifestyle, worries were not solely set on finding a job or relocating to more aesthetically pleasing living conditions. These graduates were enslaved by their student loans of $40,000 or more. The sudden realization of this can be completely demoralizing to the recent graduates, especially since the recent downturn in the economy has made many people unsuccessful in finding jobs.

Paying for college can become a nightmare for many parents and students as they matriculate from high school into the university life. Throughout their four years, or more for those going to graduate school, college debt can pile on quickly. With relief far from sight, some students receiving diplomas will have to face the tremendous amount of debt that they have accumulated while pursuing their careers.

Borrowers of school loans do not start repaying them until after graduation. This adds to the difficulty they face when trying to reconcile the financial decisions made in the present, and will have a major impact on their future lifestyles. After fighting for jobs, recent graduates will realize that their earnings will quickly be diminished from not only principal but also interest payments as well.

Federal loans are regulated and their interest rates are capped by the government at 6.9 percent. Anything that limits the highest price a supplier can charge will result in shortages, and the federal student loans are no exception. Plenty of students apply for the federal loans but no one is guaranteed placement. Private loans reach to the students who are not lucky enough to get the federal loans, with interest rates that can be as high as 20%.

For students at our University, student debt should not be too much of a problem. The tuition for in- state students is much lower than many of the private schools that are offered in the southeast. 91% of students are residents of North Carolina and taking advantage of the lowered tuition. The result is that the average student at North Carolina State graduates with about $19,000 in debt.

However, anyone can easily fall victim to the negative effects of needing a student loan. But, the best way to avoid feeling the consequences after graduation is to avoid the private loans. Federal aid and loans should be the top pick for students that cannot afford the tuition from family, gifts, or their own personal income. For the students that do not qualify for federal aid and are turned away from the federal loans are in a tenuous situation.

Students overall, but especially these students, need to become more creative when paying for school. Receiving top grades and qualifying for scholarships, working over the summer or during the semester, and becoming an RA are some of the ways that you can lower the total amount of student debt that you would have to take on as a student.

But if you find yourself heading off to graduate school you will need to consider all the options to cover the cost of the tuition. Another concern that shouldn’t be overlooked is the expected increase in future earnings. That needs to be higher than the cost of your time and the obvious cost of the tuition for the graduate program or college may not be a good investment.

We, as students, need to realize that just by graduating we are not guaranteed job placement. Student loans are becoming more of necessary evil with rising tuition costs. But, minimizing student loans now will not only prepare us for budgeting later, but also leave us money for ‘entertainment.’