Frugaling

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I Just Paid Off A $25,000 Student Loan!

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Graduation Debt Student Loans

Remarkably, over the course of this year, I’ve completely changed my budget — both in spending and income. The aim is simple: I want to destroy my student loan debt as rapidly as possible while in graduate school. Over the last few months, I’ve deposited more than ever into the federal government’s coffers by paying everything off early.

In August, one of my student loans — the unsubsidized at 6.8% — was actively gaining interest and sat around $25,000. My debt had metastasized and was snowballing into a serious concern. I thought I was doomed to this reality until I started Frugaling, found more ways to make money, and prioritized debt reduction. Then, it all clicked, and debt started disappearing.

Today, I’m shocked and proud to announce that I’ve paid off the biggest hurdle. The $25,000 loan in August now sits at $0 — completely paid off. Instead of losing thousands of dollars over the years and struggling to pay it all back, I have shortened everything. Now, it’s gone!

Unsubsidized Student Loan Chart Debt Question
My unsubsidized student loans were going crazy. In August 2013, they reached $25,000. Now, they’re completely paid off!

I know this is shorter than normal, but I just wanted to share this little achievement with all of you. Trying to keep personal finance… Well, personal!

Thank you everyone for your support and help thus far. I have a ways to go, but this is the biggest mountain to climb.

Comments

  2. Love hearing stories of people beating student loans into oblivion. I have a $35,000 gorilla at 6.5% I’m getting to now. My goal is to get rid of it in 18 months. Great job Sam you’re my hero.

    Reply

    • Dee,

      The celebration was all internal. Hah. Trying to keep it frugal, as I work to keep school student-loan-free. Thanks for the kind words.

      Reply

    • Grayson!

      Thanks for your support and tweet. Great to have it. 🙂

      It’s been a tough road, but I’m continuing to work hard to reduce my debt. Definitely getting there!

      Reply

    • Jacque,

      Thanks for the comment. Hopefully I can help! Here’s the deal: everyone’s situation is different and one size of advice does not fit all. Generally speaking, you need to strategize how to reduce costs (extremely), pay as much as you can, and skim the bottom of your checking account. That’s my best advice, as the sooner you pay it off, the sooner the interest clock stops ticking. Check out my article on 5 Essentials for Paying Student Loans.

      Sam

      Reply

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