They say taxes and death are the two things you can always count on. For college graduates, it is more like student loans and taxes. Statistics show that the vast majority of students graduate with heavy loan debt, which must be repaid.

Receiving your first student loan repayment invoices can be a shocker. When did I borrow so much money? Who in their right mind gave it to me!? The panic will subside once you put together a plan, but it can certain be a rude introduction to the life of an adult.

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.

Did you know that student loan interest is tax deductible? Uncle Sam allows every new student up to $2,500 worth of tax deductions when it comes to those student loans. The $2,500 is the maximum deduction and relates to the interest you pay that year on your loans.

In fact, the deduction can be so attractive that many recent graduates do not really show much interest in paying their loans off. This is a mistake since your student loan payments far exceed the tax deduction. Nonetheless, save the money you do not pay.

If you are only paying the minimum on student loans, you should have extra cash around. Here is what you do with it. The first step is to put aside 12 paychecks worth of income as an emergency fund to cover your for any problems that arise.

Once this money has been accumulated, leave it alone. Do not be tempted to spend one dollar from that emergency fund. Next, start to pay off those credit cards. Did you know that most students have around $2,500 in credit card debt? It will take awhile to pay off that debt, but it must be done.

After you have an emergency fund built, and you have paid off those credit cards, you can then start to invest. While you cannot escape loans and taxes, you can thank your dear Uncle Sam for the hefty student loan interest deduction by claiming it each year on your taxes.