Student loan debt is the second largest form of debt in the U.S. at $1.4 trillion. In 2012, 71 percent of students graduating from four-year colleges had such debt. The class of 2016 had an average student loan balance of more than $37,000.
But not everything is doom and gloom. According to an Economic Policy Institute study, college graduates are better off economically than those without degrees beyond high school, with college graduates earning 56 percent more on average than high school graduates in 2015. Furthermore, workers without a college education have seen a 3 percent decrease in their overall income since 2009.
Despite this increased earning potential, some prospective students hesitate to earn college degrees if they will need to borrow student loans. To help overcome this, borrowers can pursue jobs that eliminate student loan debt through forgiveness or that offer high salaries that will help employees pay off their loans. Here are some of the top jobs to consider to avoid or reduce student loan debt.
[Ask these debt questions when picking a college.]
— Public service, nonprofit or government jobs: The Public Service Loan Forgiveness program can provide a light at the end of the tunnel for federal student loan borrowers who make 120 qualifying payments while working full time for eligible employers. However, many nonprofit and public service positions do not pay as much as their for-profit counterparts. This can make it difficult for those in these positions to make ends meet while keeping up with their student loan payments.
For example, staff accountants earn an average annual salary of $55,093, but those who work at nonprofits earn about $5,000 less per year on average. Prospective accountants may choose to pursue a career in the for-profit sector as opposed to working at a nonprofit due to the additional income to help pay off their student loans.
The PSLF program, though, allows student loan borrowers to pursue less lucrative careers that serve the public good and lower their monthly payments while working toward tax-free forgiveness. Just don’t borrow more loans in the hope of forgiveness in the future, since the fate of this program for future borrowers is still unclear.
[Read more about the fate of Public Service Loan Forgiveness.]
— High-need jobs: Individuals working in professions that are underrepresented in some areas, particularly in rural and low-income parts of the country, can benefit from loan forgiveness and repayment programs that don’t necessarily require the employer to be a nonprofit. These professions include nurses, physicians, dentists, mental health professionals and others.
For instance, multiple programs — such as the Health Resources and Services Administration’s NURSE Corps Loan Repayment Program and California’s Bachelor of Science Nursing Loan Repayment Program — allow registered nurses to have their student loans fully or partially repaid.
As with PSLF, though, don’t borrow in the hopes of qualifying for a student loan forgiveness program. Programs can lose funding or jobs that are deemed high need could change over time.
[Discover how young workers are turning to employers for student loan debt solutions.]
— High-paying jobs: Repaying student loans is easier when you have a high-paying job. According to the 2018 U.S. News Best Jobs rankings, the highest-paying job that only requires a bachelor’s degree is an IT manager, making a median salary of $135,800. Petroleum engineers likewise earn a high salary — a median $128,230 — with only a bachelor’s.
That being said, the Student Loan Ranger doesn’t recommend pursuing a field based solely on the earning potential, even if it could provide you with a stable income. Only borrow what you absolutely need.
More from U.S. News
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Best Jobs to Borrow Student Loans For originally appeared on usnews.com
