Student loan repayment can have a significant effect on a student’s decision to attend a particular university, study a certain major or accept a specific job. According to a Princeton University study, as little as $10,000 of additional debt can affect a graduate’s decision to take a job in the public service sector.

The lower pay scale of these positions means that many students who would otherwise accept public service jobs shy away, for fear of not being able to manage their student loan debt. Additionally, research shows that students who graduate with no debt are three times more likely to pursue advanced degrees than students who exit their undergraduate studies with student loans.

With the changes adopted by Congress earlier this year when it passed the College Cost Reduction Act, many students are now considering careers in lower-paying sectors because the Act contains provisions that allow for income-based repayment schedules and student loan forgiveness for graduates who take jobs in the public sector. The student loan forgiveness provisions are meant to encourage graduates to take jobs as police officers, teachers in certain areas, rural health care providers, public defenders and other government jobs.

Additionally, graduates can also consider taking lower paying jobs in the private sector, knowing that their student loan payments will take into account their post-graduation income. For some professionals, this reduces the stress of finding a job that pays adequately to cover their student loan obligations.