About to graduate from college, need some advice. (Warning: Long Post)

I'm going to graduate from college in May and unfortunately I do not yet have a job offer, although I am applying and interviewing diligently. I am confident that I will eventually be able to find a job, but I want to make sure I have my finances in order in case my job search lasts a while.

My request for advice is twofold - what living situation can I afford over the next few months, and how should I approach paying off a personal loan. I'll describe everything in detail below.

My Current Situation

• Upon graduation I will have approximately $7,000 in savings and $200 in checking.

• It is likely that I will receive several thousand dollars in graduation money from various friends and relatives, but I would prefer to pretend that this money doesn't exist while figuring out my finances.

• I fully own a car currently worth approximately $4000. Although it is on the older side, it has low millage and is in good working order. I plan to drive it for as long as possible, regardless of my salary.

• I owe approximately $26,000 for personal loan from my family for a portion of my college tuition. It is a 12 year loan with a 3% interest rate, which amounts to about $215 a month. The payment schedule does not begin until August 2012. Although my family will be very flexible with payments if my financial situation is tight, I would prefer to assume that I must make every payment on time.

• Until I find a full time job, I will only be responsible for rent, utilities, gasoline, loan payments, and food. Any other expenses will be covered by my parents.

Living Situation

As far as I see it I have two options upon graduation, each of which have pros and cons:

Remain in Atlanta

I prefer this option for several reasons. I am graduating from a well respected college in Atlanta, so I believe that my degree will carry the greatest weight with employers in the area. As a major metropolitan area, I also believe that there will be more career opportunities in the area. Interviewing will also be easier if I am in the area. Furthermore, the cost of living is low in metro Atlanta, so it would be a good place to build up my net worth after I do secure a full time job. More selfishly, remaining in Atlanta will enable me to see my girlfriend and friends, as well as allowing me to remain somewhat independent.

In financial terms, I would conservatively budget $500 a month for rent and utilities if I shared a modest apartment with a roommate. I would also conservatively budget $200 a month for food, and $150 a month for gasoline. While looking for a full time job, I could continue working a college job in the Atlanta area, at which I am guaranteed to earn approximately $1,000 a month after taxes (it could be greater with commission, but I don't want to count on that).

If these assumptions are correct, I should have no problem living in Atlanta until August ($150 budget surplus), but starting in August I will have to dip into my savings to service my loan payments ($65 budget deficit).

Return home to Connecticut

The huge asset for this option is that my parents will allow me to live rent free and provide me with food. Essentially this means that my only expense will be gas for my car. While looking for a full time job, there is the possibility that I would be able to work part time at one of the pharmacies I worked at in high school. While this is not a given, and I would probably only make close to minimum wage, I would be able to be able to put anything I made into savings.

To me, the primary negative of returning home is that I believe it will be more difficult to find a job. I will be competing against graduates of schools that are more prestigious in New England, and I have not built as strong a network of business contacts back home. If I were to find a job in New England, the cost of living is extremely high. On a personal level, it will not be particularly pleasant to revert back to having a curfew and following my parents rules - not that there will be that many social events in the rural suburbs.

Paying off my Personal Loan

Despite having a relatively decent interest rate, I would like to pay off this loan as quickly as possible. I hate paying interest, and I think that it would show my parents that I'm serious about supporting myself. I plan to put any graduation money I receive directly toward the loan, as well as any additional income I receive.

My question is how much of my savings should I put toward paying off my loan? I have heard that you should have about six months of expenses in an emergency fund, which basically means that I should keep almost all of my current savings. However, if I choose to live at home, then perhaps I could reduce the cash I hold in savings and apply some toward the debt. Or perhaps the smart thing would be to only worry about making the minimum payments until I have a full time job.

Conclusion

Well this is a lot of info, so if you've actually taken the time to read it, then you should be commended. Basically, what do you think I should do Reddit? Stay in Atlanta, or move back home? Aggressively pay off my debt, or remain cautious until I have a full time job?

Thanks.