Career

I have been out of college for just over a year now and am waiting to be hired by the Federal Aviation Administration (FAA) as an air traffic controller (a 2 to 3 year process, on average). I was lucky with scholarships and waivers and have about $20,000 in student loans (all federally subsidized) and am currently on a standard payment plan for a 10-year repayment period. I have enough saved up in CDs, money market accounts, savings and mutual funds that could pay off all of the loans but only leave me with about $5,000 left over to deal with any "unplanned" expenses (I have no credit card debt and a full-time job with a major airline). Is it smart to get rid of all of my debt immediately but be left with little to fall back on? Should I pay off half of the loan and repay the rest over time? Michael, Minneapolis, MN

It is time for potential graduate students to hear back from schools. I was accepted to two top-rate, out-of-state schools and will likely get into an unranked in-state school. I compared the cost of out-of-state schools to the in-state school; the difference (over the 10-year repayment period) exceeds $55,000! All graduates have to pass a standardized national exam to be licensed, and all graduates in my field are employed. Is the difference in quality and reputation worth the extra debt? Will my starting salary be affected, and how important is that over the course of my career? Jordan, Raleigh, NC

I have both private and federal student loans from undergrad and law school... I was wondering if you have any advice as to how best to manage this debt? I'm 28 and single so my financial obligations are otherwise relatively minimal for now, but due to my debt-to-income ratio, I've been unable to really lay away much in the way of personal savings in the 3+ years I've been out of school, let alone start saving for retirement. I'd really appreciate any advice you might be able to give to someone in my situation. Thank you! Kira, New York, NY