Someone said she's a teacher? I'm qualified to comment on this topic:
- Is she teaching in a Title One school? Could she teach in a Title One school? I'm not sure whether that can eliminate her loan or reduce it, but she should investigate this.
- Teachers can often pick up small extra work tutoring, working ball games, administering standardized tests, or teaching online. She should investigate these possibilities; however, the first three years teaching are tough enough without adding extra responsibilities.
- She can "up" her salary with a masters' degree or a National Board certification. It'd be smart to do this while she's young so she'll have more years to take advantage of the higher salary.
- Teachers don't tend to get a "match" with 401Ks, so that may not be her top priority right now; however, she should start SOME retirement savings. She will never again be this young and have this many years ahead of her to let compound interest work its magic -- yes, this is a balancing act between the loans and the need to begin saving for retirement savings, but she's already made the choice to take out the loans, so she's obligated to make this work now -- and that will probably mean doing without some things she wants.
- She should investigate the details of her state's retirement plan. LOTS of people don't bother to do this until they're close to retirement, but making good choices along the way can make a difference at retirement time. I'll give an example from my own state: In high school we teach two semesters, and teachers who have a baby tend to "take off" one semester. The school holds the job, and it seems like an easy choice . . . however, young teachers who don't pay attention don't realize that to get a year of credit towards the pension, they must work MORE than half a year. So working a semester + 1 extra day = a year towards the pension, whereas working exactly one semester = no credit towards the pension. See how a few minutes of research can make a real difference in a teacher's life? Need another example? It's important to realize that teacher pensions are based upon staying IN THE STATE. If she moves to another state, it will have serious ramifications to her pension.
- Having said that, she should pay close attention to what's happening in schools. The likelihood of her working 30 years in a traditional classroom like we all attended is . . . roughly zero. She needs to know what's happening in your area. In my state, the legislature seems to be trying to phase out traditional public school in favor of charter schools and online education, which is MUCH cheaper in the long run. She should pay attention to what will happen to her retirement if she changes her job within the school system.