Student Loans - A Cautionary Tale

I just saw this article on Yahoo News about a doctor whose student loan debt amounts to $550,000. According to the story, she'll be finished paying off the loan when she's 70 year old!

Student loans are sometimes the only option (besides joining the military) that families have if they want their children to get a college education. Unfortunately, like many other financial institutions, they are a credit trap and the debt can literally last a lifetime. It's also a type of debt you must pay back - it cannot be resolved through bankruptcy.

Right now I'm having trouble paying off my student loans, and I didn't even take out much. I've been in forbearance practically since I graduated, and because I don't qualify for deferment, I've been racking on interest to the principal balance. It sounds crazy, but because of the rest of my debt, I may have to declare bankruptcy just so I can finally start paying back my student loans.

Here's my advice to students:

1. Get a scholarship - there are tons of untapped scholarship awards out there...it just takes a little research to find them!
2. Work while attending school - although the on-campus college experience is great, there's nothing like graduating from college debt free. You'll also have a ton of work experience on your resume, which will put you a step ahead of your fellow graduates.
3. Think twice about ivy leagues or other top schools - Having a school like Harvard or UC Berkeley on your resume looks good, but is it worth the cost? And is the education really that much better? In my opinion, our careers are really based on relationships - it's about who you know, not what you know. As long as you develop good relationships with people in the industry you wish to pursue, you can get a solid education at a second-tier school a second-tier school and have a very successful career for a fraction of the cost!
4. Get your company to pay for your Master's degree - Many companies offer tuition assistance for their employees. Also, instead of going to graduate school right away, get a job! You'll gain valuable work experience and have a better idea of what you really want to do. I know it's hard to go back to school, but if your company is willing to reimburse you, isn't it worth it to wait?

How are you managing to pay off your student debt? And do you have any money you can lend me? ;)