I have finally paid my student loans off completely, and it feels amazing! I logged in and the balance was at zero after my last payment. Zero. ZERO!!! I remember the nervous breakdown I had after paying my loans for a few month. How am I ever going to be able to afford moving out? Am I really going to be paying these student loans off into my 30s or even longer? That is when I finally got the courage to look at the actual numbers and realized that I could pay off my loans in less than 10 years. It wasn’t easy and I made a lot of sacrifices and got a ton of help along the way. And now here I am today, my loans completely paid off in a little under 3 and a half years.
This was a huge month towards my debt repayment and completely paying off my student loans for good. If you’ve ever heard of the phrase “March comes in like a lion, and goes out like a lamb” when referring to the weather, I’d like to think that I’ve done the same thing to my student loan this March. I received my bonus at work this month and I also received my tax (federal and state) refunds as well – giving a significant boost in income for the month. I then took that increased amount and I put a large portion of it directly towards my student loan. At this point in time it seems to be the best use of my money, with my next priority being to fund my Roth IRA.
I’ve made my second payment towards my student loan for 2016, and progress continues to be steady. I’m still pushing towards my goal to be student debt free by May of this year, and I’m still on track towards that goal. So far the winter has helped me keep my spending down, which results in more money going towards my student loans instead. Hopefully I’ll only be sharing three more of these student loan progress posts with you, which can then transition into savings progress posts instead. Those type of monthly updates sound much more appealing to me!
I have officially entered the 4th year of student loan repayment, and I must tell you that the start of each year I have felt more and more confident about finally paying them off for good. I’ve been able to refinance my loans multiple times and ramp up payments whenever I had some extra money. Strict budgeting has enabled me to set aside money for student loans before spending it elsewhere. I started this repayment in December of 2012 and I’m hoping that 2016 will be the last year that I make a payment. It sure as heck beats the original 10 year payback period that comes with most student loans!
It’s time for the final progress update for 2015, and most likely also my final post of 2015. It’s been an interesting year in my debt repayment journey. I initially planned on moving out sometime this year so I had set a much lower goal, but then changed that. Shortly after increasing that goal I was in a car accident which caused my car to be totaled. This put a temporary decrease on my student loan payments and cut significantly into my savings which forced me to re-work my repayment strategy once again. But even after that setback, I managed to get back on track towards meeting and even exceeding my goal for this year. So while 2015 didn’t bring me the best luck financially, I’m grateful for everything that I was able to accomplish this year.