Young Nonprofit Workers Get Creative to Make Ends Meet

It's one of several loan-repayment solutions to explore, particularly if your student loan bills are more than 20 percent of your income. The average undergraduate loan debt is $18,900, and graduate students owe an average of $45,900 on undergraduate and graduate loans, according to the 2002 National Student Loan Survey.

"Be preemptive. Student lenders are extremely flexible," said Wong Ulrich, the financial expert. "Call your student loan office and let them know in advance that you can't afford your monthly minimum. Forbearance or graduated income plans can draw out the life of your loan, but you're better off if the alternative is a bad credit report." Steady repayment of loans can set up an excellent credit report, she added. So aim to start out with a lower, affordable monthly cost that you can then increase as your income grows.

Another option is consolidation, or putting all your loans under one lender's roof. This might prolong the payment period, but it can result in a lower fixed interest rate that is both predictable and constant. Opting to do so, however, can mean forgoing any grace period and paying immediately.

And, by consolidating your loans, you might not be able to take advantage of publicly financed debt-relief plans, such as federal service programs. A stint with the Peace Corps or AmeriCorps, for instance, can not only satisfy an altruistic urge and provide valuable skills transferable to all walks of life, including higher-level nonprofit careers, but it can also provide loan deferment options and education awards.

A final thought: Not all nonprofits pay the same. "There's a preconception that you can't make much at a nonprofit. But in fact, some are very competitive at an entry level," said Jones Voiklis, of Idealist.org. While one study found that only 46 percent of graduates earned at least $30,000 in the nonprofit sector and average wages for graduates entering nonprofit groups are 22 percent lower than those entering the private sector, there is substantial variation within the nonprofit world, which spans the health, education, recreation and professional industries.

Moreover, many nonprofit groups provide excellent benefits and a less bureaucratic culture that can sometimes translate to greater responsibility and more challenging work. Said Nicole Sawran, 25: "The payoff can happen very fast. There's a lot of flexibility to shape your position and job, and quickly take on more responsibility."

Sawran relocated from Massachusetts to the District when she landed her first post-college position, with National Geographic, which paid in the high $20,000s. She owed nearly as much in loans. Three years later, she is legislative coordinator for Better World Campaign, which works to build a stronger relationship between the United States and the United Nations. Her income has increased substantially.

"For my age, I feel like I'm doing fine, at least comparable to my friends in the for-profit world," Sawran said. And, she added: "I knew when I was graduating that I wanted a job where I felt good about coming into the office. The paycheck wasn't the biggest payoff. I love what I do. It challenges me every day."