I'm one of the lucky ones: I finished my undergraduate education with student loans less than $10,000, and that's only because I had a full scholarship. About half of all college students take out financial aid loans, an average of $10,000 each (National Center for Education Statistics). College tuition costs are rising, and with them the debt burden of the average student. For many students, it's not unusual to graduate with the debt equivalent of year's worth of starting salary --decades of loan payments staring them in the face. Getting rid of student loan debt is a huge part of getting rid of your overall debt, and you shouldn't feel overwhelmed or bewildered by the process.
There are two basic options for reducing student loan debt: reducing the principal balance of your debt, and using loan forgiveness programs to pay back your loans for you. The suggestions below offer advice on managing and consolidating your loans to make paying them back easier, as well as finding loan forgiveness programs that fit your talents and background. Here's to less debt and a solid financial foundation.
Reducing and Consolidating Student Loans
Make your monthly payments, on time, every time. Making your regular payments is one of the most important parts of managing your student loans. Missing a payment will increase the amount of money you pay back in the long run because of increased interest charges. On the other hand, simply increasing your payments by a small amount each month will save you a lot of money in the long run and decrease the life of your loan by a few years or more. If you have trouble remembering to make your monthly payments, setting up an automatic payment to be withdrawn from your bank account is an efficient way to always make your payment on time.
Check into different student loan payment options. If you're struggling to make your payments, look into different payment options. Talk to your loan provider or your financial aid representative at school and find out if you can adjust your payments to better fit your income. This usually means refinancing or consolidating (rolling all of your loans into one larger loan -- see below) your loans to get a lower monthly payment. Consolidation lowers your monthly payment by giving you a lower (and fixed) interest rate or extending the life of your loan. Because a portion of your monthly payment is always paid toward interest, choosing a lower interest rate will save you money on your monthly payments and over the long term repayment life of your loan, while extending the life or your loan will mean a lower monthly payment but more money repaid in the long run. 
Know when you're eligible to consolidate your student loans. Different loans from different lenders have different conditions for consolidation eligibilty. Most loans are eligible for consolidation when you are no longer enrolled in school (graduating, dropping below full-time, or leaving school), when the loan is in its grace period or repayment, and if the loans meet a minimum balance requirement. Talk to the consolidation department of your loan provider to find out if you're eligible for a consolidation loan, and what the terms of the consolidation will be. Although a consolidation loan can mean extending the life of your loan repayment plan, the lower interest rate can save you a lot of money and having one lower monthly payment instead of multiple loan payments can help you organize your finances and even pay more money toward your loan each month.
Save money by consolidating your federal and private student loans separately, federal loans first. Federal loans come with a lot of financial advantages that private loans don't have, such a tax-deductible interest and forgivness programs (see Loan Forgiveness Programs below). The only way to consolidate your federal and private loans together is to take out a private consolidation loan, which will eliminate any financial advantages of your federal loans. Consolidate your federal loans first in order to get the most out of these financial advantages, then talk to your private loan provider about your options for private consolidation.
Loan serialization is another option for repaying student loans. If you don't feel comfortable with the consolidation options of a higher interest rate or longer repayment period, aren't interested in or eligible for loan forgiveness programs, and don't want to apply for forbearance or deferment, loan serialization is a less common but still viable solution for repaying your student loans. Loan serialization occurs when another lender purchases your loans from your lenders and "stacks" the payments, allowing you to repay your loans one at a time. Because of this, loan serialization does offer you a lower monthly payment, but still extends your total repayment period and keeps the variable interest rates for each loan. Certain loans, including some federal loans, are not eligible for serialization.Loan Deferment and Forbearance and
Loan Forgiveness Programs
If you're having difficulty making your loan payments, Loan deferment and forbearance are two options to keep you from defaulting on your loan, which occurs when you fail to make payments within a period of time specified by your lender. Defaulting on a loan comes at a high cost, financially and to your credit score, so applying deferment or forbearance is a good choice if you think you are unable to make your loan payments. Loan deferment simply postpones the repayment of your loan, and your accruing interest is either paid by the federal government (if your loan is subsidized) or added to your overall balance (if unsubsidized). Loan forbearance allows you to make no payments or lower payments and takes into consideration extenuating circumstances such as poor health and unexpected personal problems. You can request forbearance for the principal balance of your loan, the interest on your loan, or both, and you may qualify for forbearance if you don't qualify for deferment. For more information, and for the necessary application forms, visit the federal student aid website.
Loan forgiveness programs allow you to cancel all or part of your loan in return for a specified period of service; the amount of the loan will vary based on the organization and the amount of time you serve. Qualifying services for loan forgivness usually include military service, volunteering, and teaching or providing health care and legal aid in certain communities.
Military aid is an entirely different realm of financial aid and most branches of the military provide their own educational reimbursement incentives. The Peace Corps, Americorps, and VISTA (Volunteers in Service to America) volunteer programs require a specified time of service (two years for the Peace Corps, 1700 hours in 12 months for Americorps and VISTA) and in return provide loan deferment and a living stipend while in service, and a taxable financial award ($4725 for Americorps and VISTA) to be used towards student loan forgiveness or educational expenses upon completion of service. Students who become elementary or secondary school teahers in low-income areas are eligible for a variety of loan forgiveness plans that vary by school and state. The US Department of Health offers loan forgiveness programs through the National Health Service Corps and the Nursing Education Loan Repayment Program to health care workers providing services in remote and/or economically struggling regions. The US Institute of Health pays up to $35,000 a year in student loan debt for US citizens conducting medical research. Other loan forgiveness programs for health care workers vary by state and medical facilities. Many law schools offer loan forgiveness for students working in public interest and non-profit positions.
For more information on your loan forgiveness options, contact the organization above directly and ask your school or employer about loan forgiveness programs in your field.
