August ended up being a bounce back month for me when it comes to student loan payments. After having to deal with a car purchase and funding my Roth IRA for 2015, I’m now back into somewhat of a more “stable” financial situation. I still have to deal with building my emergency fund back up and also a car loan, but I’m able to make my student loans the priority once again. The past few months saw me drop my student loan payments significantly, but I was still able to make good progress. For August I was able to step my payments back up and I brought the total amount of payments back up $2000. It’s not as much as the $2400 a month I was paying at the beginning of the year, but I’m thinking that should be possible in the coming months.
Summer is going too fast, and I know that my June budget brought some setbacks towards my overall financial picture. I’m hoping that I’ll be able to turn that around and bring some better news in July and August. I’m hoping to start that with this update on my student loans and continue that with the budget report for July. I’ve had to take on some additional debt as last month, which wasn’t ideal but is necessary under the circumstances. Eliminating my student loans still remains my top priority as I try to balance my other financial goals, but the majority of my income will still go towards paying off my student loans. In sticking with that priority, I have refinanced my student loans (again!) to an even lower interest rate which should save me a few hundred dollars at minimum.
It’s that time for my favorite post of the month; the student loan progress update. The reason for this being my favorite post is that so far I’ve been able reduce my debt every single month. It’s a confidence booster to be able to keep seeing that number go down with every update. June does have a slightly lower payment than what I’ve been paying so far, and that continues the trend from May. I’ve been super busy lately, so I haven’t been able to get a full update on the used car purchase. What I’ve been working out is a separate tracking sheet to show my Roth IRA, emergency fund, and my car loan. It’ll show you where the extra money is going each month as I try to hit each of those three goals. That’s where the balancing act comes in with reducing my monthly student loan payments, though I may change that depending on interest rates.
I was hoping to enter May with my current momentum carrying me forward in full force, but unfortunately that plan may have taken a slight delay in the mean time. If you remember in March I was able to make the last payment on my federal loan, and last month I only had to make a single payment on my remaining private loan. And while I still have a $25,000 balance remaining on that last loan, it felt great to make that one payment. I even adjusted my goal for 2015 from $15,000 to $24,000 as plans and circumstances changed allowing me to continue putting $2400 towards my loans each month for at least the next few months. But those plans hit a brick wall last month and it’s reflected in my student loan payment this month!
April begins the first month in a new chapter in my student loan repayment journey, as I now only have a single payment to make each month. If you recall, last month I completely paid off all my government student loans. I will never have to deal with FedLoan Servicing again and it feels like I’m starting to gain momentum as I prepare for the sprint to the finish line. This last loan had been on auto-payment for the minimum payment these past few months, and I never touched that. My focus had been eliminating the government loans so all my extra income was going towards them. This is the first month that I made an additional principal payment towards this loan, and I can happily say that everything went through without any issues. Thank you SoFi for making things work so smoothly with my additional principal payment.