I am able to provide one-on-one financial counseling for more than 400 people each year, and one of the top debt burdens I see is student loan debt.

What is the number one way to pay less on student loans? It is quite simple. Pay less for college! I have seen so many people who have received an education at an enormous expense when they could have easily obtained their degree for half of the cost by attending a state school or a less desirable school that had offered excellent scholarships.

Most degrees do not require a pedigree. A secondary education degree from Harvard does not command a huge difference in salary at a public school when compared with the same degree from a state school. However, there is a tremendously different price tag for the degree.

According to The College Board’s “Trends In Student Financial Aid 2007,” the average amount borrowed for a four-year public institution is $5,380. The average borrowed for a four-year private institution is $7,320.

If you or your child are choosing a college, it is essential to have the “finances talk” up front, early and often. An expensive private, highly regarded school is fantastic if it can all be paid for in advance. But when it must be financed, it can be an enormous obstacle to achieving financial freedom.

If you already have student loans, there is another way that you can save a tremendous amount of money. Here is how: PAY ON TIME! It is that simple. Did you know that most student loan companies provide substantial discounts or credits to people who pay their payments on time?

For example, Sallie Mae will provide a 3.3 percent credit of the amount borrowed if one makes their first 33 payments on time. If that 3.3 percent credit is applied directly to the loan balance, it will result in a savings of 5.35 percent of the loan amount.

South Carolina Student Loan Corporation will provide a 0.25 percent interest rate reduction just for allowing them to automatically draft your payments from a bank account. After making 36 consecutive on-time payments, they will provide a 2 percent interest rate reduction. AND if you make every one of your payments on time, they will forgive the final portion of your loan — $500 for a four-year degree.

The key is to pay on time. To find out the potential benefits of paying your student loan on time, contact your student loan company and ask.

By the way, I have heard some people say that they will just declare bankruptcy after graduation and clear out their student loan debt. That will not work because student loans cannot be forgiven through bankruptcy. Student loans will be repaid. This makes it that much more important to control the cost of one’s education.