Student debt is a major issue which will influence the financial habits of Americans for quite some time

Meanwhile, graduates who are able to find jobs after they leave school may be able to use a payday loan advance to cover necessary expenses if loan payments paint them into a financial corner. The total student debt load recently surpassed $1 trillion, with the average graduate leaving school with $25,000 in loans. This has forced record numbers of young adults to move back home while they work to get their financial footing. However, new state-sponsored programs could make the act of moving to small towns with dwindling populations a good investment for graduates.

Kansas recently implemented a program to attract recent graduates to areas of the state that that have experienced rapid population losses in recent years. Young adults are offered an opportunity to take a state-sponsored job that offers up to $15,000 toward student debt repayment. The program, which is only in its first year, attracted 411 applications from 33 different states.

So far, Kansas has allocated $1 million toward the program and concentrates on 50 counties that have experienced population drops of at least 10 percent over the past decade. It’s believed that young adults who relocate to these areas will not only be able to help themselves, but also spark activity in local economies and housing markets.

Recent graduates in the healthcare field are especially targeted by such initiatives from private companies, since they often graduate with such high debt loads. Tenet Healthcare, which owns and operates facilities across the country, has become an advocate for these programs and has even offered similar perks since 2022.

Since this is still just a budding initiative, many graduates may not have this option, and will have to pay off their student loans the old-fashioned way. However, according to Real Simple, there are ways to cope.

Pay Variable Private Loans First

This type of loan accounts for an estimated 15 percent of total student debt and is often provided by banks and credit unions, rather than the federal government.

Based on current developments in the economy 2022, rates on these loans could increase significantly in the coming years. This could make monthly payments unmanageable, so it would be a good idea to pay them off before moving on to other student loan types.

According to Real Simple, if you can, try to pay double the required monthly amount, as this could cut the lifespan of the loan dramatically. At the same time, only make minimum monthly payments on federal loans, which often have fixed rates.

Select A Federal Debt Repayment Program That Fits Your Finance

Federal loans make up the remaining 85 percent of the total student debt load, and there are a number of different repayment options. The most popular is often the standard plan which requires a minimum payment of $50 each month for up to 10 years. However, there could be some issues with this approach.

Instead, graduates may want to opt for an income-based repayment plan. This sets a cap on your monthly payments to a reasonable percentage of your income. Meanwhile, if you have any debt left over after 25 years, the balance will be forgiven.

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