Being an adult can be a scary proposition at first. For instance, the first time you get repayment invoices for your student loans. There is a reason some graduates refer to them as their first child. They can be a financial burden!

Receiving your first student loan repayment invoice in the mail can be a real shocker. Ah, but you have a second whammy coming down the line. Yes, I am talking about the joys of paying taxes now that you have some real income. It can be slightly depressing. Regardless, Uncle Sam is going to help you out.

Aside from all the usual strategies involved with attempting to repay those loans, you must not forget about good old Uncle Sam. You see, your uncle wants to help you with those loans, which is why he has implemented an interesting tax strategy regarding the interest you pay off yearly.

Much like a home mortgage loan interest deduction, the government lets you deduct up to $2,500 in interest paid on your student loan each year. This is a healthy deduction for most college graduates.

This health deduction can lead many graduates to implement an odd financial plan. They decide to make the minimum payments on their loans, so they can claim the deduction for years and years. This works okay so long as you show some discipline with the money saved.

In fact, there are a number of things you should do with that extra money. Buying a plasma television is not one of them. The initial step, instead, is to create an emergency fund that has enough money to cover you for sixteen weeks.

Hide that money away. Now take a look at those credit card bills. Take your credit cards out of your wallet and store them away for emergencies. Now start paying off those cards. Start with the smallest balances and move to the biggest

Once you have taken care of these two things, start pooling and investing your money. Your goal is to build up a big enough investment that you can pay off the loans in one fell swoop. Until then, claim that deduction!