4 Best First Jobs If You Want To Tackle Student Debt
Written by
Kellan Jansen
Edited by
Jasmine Browley
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The average college student now graduates with more than $30,000 in debt. Under a standard 10-year repayment plan, that costs about $318 monthly, assuming 5% interest. Choosing the right job is a great place to start if you’d like to make stable income and simplify your student debt repayment. Doing so can help you repay your loans faster or qualify for a valuable forgiveness program.
The following four jobs are great fits for new grads interested in lowering interest rates and optimizing their student loan repayment strategies.
Teacher
According to the National Education Association, the average salary for a new teacher is $44,530. That may not be enough to outpace your 10-year repayment plan, but teachers also qualify for the Public Service Loan Forgiveness program. Under PSLF, borrowers pay between 10% and 20% of their discretionary income. If you do that for 10 years, any remaining federal student loans will be forgiven.Â
You don’t even need to teach for the entire time. If you stay in a public service job for 10 years, your debt will be forgiven and your monthly payments will remain minimal. Teaching is also a great way to gain valuable skills to serve you in other careers. Many educators end up transitioning into administrative and corporate training roles.
Engineer
If you can’t get your student loans forgiven, paying them off quickly is the next best thing. Doing so minimizes the interest you pay over the loan’s lifespan. That’s what makes engineering another strong option for recent college grads.
Entry-level engineers earn an average salary of $68,011. New engineers earn even more in robotics ($81,743) and aerospace ($76,293). You can put that extra cash toward your student loans to repay them faster and minimize your interest.
Police Officer
Working as a police officer is another excellent way to pay off student debt. New officers earn an average salary of $62,148. Since they’re public servants, cops also qualify for PSLF.
In some ways, this job offers the best of both worlds to new graduates seeking to repay their debt: It pays a substantial starting salary while providing a pathway to future loan forgiveness. This gives you a lot of flexibility.
If you enjoy working in law enforcement, you could make it your career and have your debt forgiven. If you don’t, you could use the salary to repay your loans faster than the average graduate. Plus, you’ll get a great experience that can prepare you for different careers. Many former cops end up becoming lawyers and high-paid private security consultants.
Financial Analyst
Entry-level financial analysts earn the most of all the jobs on this list. They take home an average starting salary of $70,955. You also may qualify for bonuses and commissions, which you can put toward paying off your student debt faster.
Financial analysts don’t qualify for PSLF, but they have significant earning potential and plenty of ways to turn this role into a long-term career. They regularly move on to work in consulting, management and even venture capital.
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