When you have six figures of student loan debt it can feel like you’re never going to get out. Well, at least that’s my experience carrying that kind of debt. But now that I’ve been repaying my debt for about four years, I’ve finally paid off $100,000 of student loan debt.
Read on for the strategies I’m using to make the final push and pay off the last $31,000 of student loans. Estimated read time ~ 3 min watch time ~2.5 min.
In case you’re unfamiliar with my personal student loan story, it goes like this. I’m a first generation college student and attended a public, in-state university to get my Pharm.D. I worked two jobs during college and got scholarships to help pay for costs. Despite that, I borrowed $118,000 in federal student loans to become a pharmacist. By the time I graduated I owed $128,000 due to interest on my unsubsidized loans. Add on a year of residency to specialize and despite making payments my balance grew to $132,000.
I made the mistake of paying very aggresivly under my existing federal repayment plan. The problem was that my average interest rate was around 6.5%. After a year or so of that I wasn’t making the progress I expected and learned about refinancing. I refinanced my student loans for a 3.36% interest rate and learned an expensive lesson.
But here we are today and I’ve used my low interest rate to make some major progress on principal. $100,000 of progress to be exact. Here are the strategies I’m using to get me to the finish line and out of student loan debt for good.
Check your student loan balance often.
For me, I check my student loan balance every time I get paid which happens to be bimonthly. Keeping an eye on my balance reminds me how annoying interest is and keeps the reality of my debt fresh in my mind.
Lately, checking the balance has also been very encouraging. I love seeing how fast the principal is decreasing.
Make extra payments.
This is the number one way I’m on track to get out of six figures of student loan debt in the next year. I have to pay more than the minimum monthly payment.
I make a point to make an extra payment every time I get paid. I do it after paying all my bills (including retirement and savings) and before I decide how much “fun money” I have left after all that is paid.
I live in the Midwest and have a relatively low cost of living compared to other parts of the country, so the size of the extra payment you can make is probably going to be different. That’s fine, just keep the mindset that every little bit extra you can pay now gives you returns in time and interest down the road.
Acknowledge milestones.
Be sure to acknowledge and mark your successes paying down your debt. Even if it’s something like acknowledging the fact that you chose the right repayment plan, or slashed your interest rate refinancing, or submitted the employer certification form required for Public Service Loan Forgiveness.
Giving yourself credit where it’s due is great for motivating you to stay on the long path to freedom. Set up milestones that mean something to you and pat yourself on the back for a second before returning to the grind of repayment. Just don’t get too crazy treating yourself!
Imagine freedom.
Spend some time thinking about what your life will look like when you don’t have to make your monthly student loan payment anymore. Think of how that will feel financially. Think of what you’re going to use your money for instead.
Use that vision and the desire to be free from your student loan debt to fuel you to keep on keepin’ on! I know the fight can be a long one but I’m here to cheer you on every step of the way. I know you can find your #debtfreedream
How much progress have you made on your student loan balance? I love hearing everyone’s student loan stories so be sure to leave me a comment below or on the Repayable Facebook Page.
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