In student loan debt, forever

My co-worker Jennifer, after working for the Company 14 years right after the college, still have some student loans to pay between her and her husband. For the recent college graduates, the student loan situation is getting worse. It is likely many of them will have few hundreds dollars automatically deducted every month from his/her salary to pay off college loans, for 30 years. In another word, they will not be free of college debt until they almost reach the retirement age. This is especially true if college graduates go on for master's degree and Ph.D in less lucrative professions.

According to a recent report :

1) because of higher tuition, steady or declining grants and state aid, and a greater dependency on loans, the average student's debt has increased by more than 50% over the last decade;

2) starting July 1, 2006, the rate for so-called Stafford Loans, which represent the vast majority of federal education loans, will be fixed at 6.8%, compared with the current variable rate range of 4.75% to 5.38%. The rate for loans taken out by parents on behalf of their children will increase from 6.1% to 8.5%.

3) the new interest rates will result in payments that are 20% higher compared with the 2004-05 rates, doubling the total interest paid over the life of the loan.

How to avoid this kind debtors' prison ? Here are few of my suggestions:

1) chose to go inexpensive public universities that could provide educations at least as good and marketable as those expensive private institutions;

2) attend even cheaper junior colleges for first few years of college to earn credits, and then transfer them to a better colleges;

3) make smart cost/benefit decisions. Financially speaking, if you want to be a social worker, no need to go to Harvard.