So you're out of school – congratulations. Of course, that also means that it's time to pay your tab. (Sorry.) Your first question is probably something along the lines of "How in the world am I going to pay back all that money?" And it's a good question, too.

In fact, you may want to ask it at your exit interview, which you're entitled to by law if you've received student loans. This is simply a time to meet with a financial aid advisor to discuss your repayment obligations and options. We know it's a busy time for you, but take advantage of the opportunity. It's a chance for you to learn more about your obligations and how you can make payments easier on you.

Some other things you should know about:

Amazing grace periods: The first thing to know – if only to stave off hyperventilation – is that you've got time. Not a lot of time, granted, but student loans generally come with a grace period of about six months after you leave school and before you have to start paying. It doesn't matter if you graduate, quit or just take some time off; six months is six months.

Don't blow it. Organize your finances, evaluate your options. If you plan to go to graduate school, ask the lender to defer your payments until after you finish. If you're unemployed, you can ask for a deferment until you find a job.

Paperwork: You'll have plenty of this – for your loans, for your taxes, for a lot of things. We'll get into this more in a later lesson, but for now, just make sure you create a file of all the important loan paperwork, and keep it someplace safe.

Repayment options: Depending on what you can afford, there are plenty of ways you can arrange to pay back your loans. If you can do it, the standard payment plan gets you the lowest total loan cost. Other options include:

• Graduated payment plan: Payments start small (like your salary), then get bigger over time (let's hope the analogy holds). It's a convenient option for you now, but it'll cost you more in interest payments.
• Income-based payment plans: Similar to the graduated plan, but the monthly payment amounts are tied directly to your income instead of rising gradually no matter what your income.
• Extended repayment: Allows you to make smaller payments for a much longer period of time. Of course, the longer you owe money, the more interest you pay, and the total amount in the end goes up dramatically.
• Consolidation: This option may actually lower the total amount you pay. If a lender can offer you a lower interest rate, and combine all of your loan payments into one convenient payment, you could save a lot of money over the life of your loan.

Default logic: You may be tempted to blow off your loans. Don't. After six months of nonpayment, your school will send the collectors after you, your credit rating will be shot (for the next 10 years) and the IRS will withhold any tax refunds you might be entitled to. All of which means you won't be able to get a decent car loan down the road, or a mortgage, or a credit card, and those are the better scenarios. Seriously, don't default.

Just. Don't.

Owe less: So you're unemployed (AKA, English Major's Disease). That doesn't mean you can't chip away at those loans. By volunteering for certain government projects, you get money to cover financial aid. Consider these:

• Peace Corps: Travel the world, help people rise above poverty, and – oh yeah – cancel a substantial portion of your Perkins loans. By joining the Peace Corps, you can get a 15% cancellation on each of your first two years and 20% on your third and fourth years. That's a 70% reduction for four years of service. Just make sure you contact your lender in advance of your term of service to receive your cancellation credit.
• Americorps: If you like the idea of the Peace Corps but don't want to leave the country, Americorps is for you. Get up to $7,400 for living expenses and, after a year of satisfactory service, $4,725 to be used toward education. The education award can be used for future education or to pay off loans.
• Military service: All five branches of the military offer education assistance programs. Check with your local recruiter to find out how they can help you.
• Teaching: Depending on where and how long you teach, you can get complete loan cancellation or at least a deferment of some loans by filling some understaffed teaching positions, including teaching in schools serving low-income students or teaching certain subjects in which there are a shortage of teachers.
• Legal and medical service: If you choose to study medicine or law you can rack up some hefty education loans. There may be a way out; check around for programs that offer partial cancellation of loans for public service.