The end of 2014 sure did come quickly, didn’t it? At least for me it really feels like we rushed into Christmas and now it is basically the New Year. I made my last student loan payment for the year right before Christmas, and while it wasn’t really an early Christmas present or anything out of the ordinary there was still progress to be made. I pushed hard towards all of my goals and I’m really happy with the progress I made throughout the year. I have a strong feeling that my situation will change next year, so it was important to me to pay off as much as possible throughout 2014 and I believe I accomplished this.
As 2014 comes to a close, I have now made my second to last payments for this year and things are moving along at a great pace. As I wrote about recently, I was able to refinance my private student loans for a second time. This brings my interest rate down from 6.5% to 5.49% and will save me some money in the total amount paid over the life of my loan. I continued making my payments of $2300 a month as I have been doing most of the year as I try to meet all of my repayment goals. But first let’s take a look at the numbers to see exactly how things went this month!
You might remember that earlier this year I had private student loans consolidated and refinanced. The initial loans that I had taken out with my parents as co-signers were at rates of 7.92% and 7.35% which wasn’t very good compared to the fact that federal loan rates were as low as 3.4% when I was in school! I quickly paid off the smallest loan with a 7.92% interest rate and then moved my focus on to the next loan with that balance. Realizing that would take over a year to pay the complete loan balance, I decided to switch my focus to eliminating the 7.35% interest rate loan in two months before switching back to the 7.92% after that.
Time for another progress report on my student loan progress with only a few months left in the year now. It seems like this year has really flown by and I’m already missing the warmer weather, now if only my student loans could fly by just as fast. I was actually looking forward to this month’s progress report as I knew I would be paying off another loan this month, which is always a good feeling. I’m trying to end the last few months of 2014 on a high note, looking to get it down to three total loans and trying to meet both my stretch and extra goals. We’ll see how November and December end up going, but I think October was a great start for meeting those goals.
Fall is finally here, and though I’m not looking forward to the Winter I do enjoy Fall almost as much as I enjoy Summer. I’ve continued with my steady pace of paying off my student loans this month, using the avalanche method (mostly) of paying back the highest interest loans first. My strategy has changed a bit in recent months as I try to eliminate minimum payments in anticipation of moving out, but I’m still targeting the highest interest loans out of my government loans. Unfortunately my private loan remains the largest loan and highest interest loan, but the balance is a bit too high to be able to pay this off and move out early next year.