Finance Globe

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Update on How I Am Paying off My Student Loans


I wanted to provide everyone an update on my progress on paying off my student loans. This not only helps me keep track of my progress, but I hope it provide others in my situation an example as well as some helpful tips.

I am officially one year in, and I have paid $17,400 towards my student loans. While this number feels great, I know I still have a long way to go. With my interest rates, I am lowering my principal balance approximately $1,250 each month (Paying $1,450 each month). This will increase over time, and I have a relative low cost of capital all things considered. I have not missed any payments or goals to date as paying off my student loan debt is my number 1 priority. I have certainly been stressed at times, and I have had to make adjustments to my budget to be able to continue to pay $1,450 each month. I have had to make smaller payments to my retirement account, forgo vacations, and delay purchasing a house. I am still slightly ahead of schedule, and expect to pay off all my loans by April 2020. While this seems like a very distant date (and it is), I try to focus on each month and know I am lowering my debt as much as I can each month. 

As long as I keep my current cost of living in check, I should be able to continue paying $1,450 each month. On the upside, if I continue to increase my income from my job as well as any side projects, I hope to be able to contribute a little more each month. I have a goal of increasing my payments to $2,000, but only if I can make that difference in incremental income. I won't be upset if I don't meet that goal, but want to put a "stretch" goal out there to try and motivate myself to obtain it.

Overall, I am happy with my progress and will continue to push where I can. Please let me know if anyone has any additional questions about my experience.

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Tuesday, 21 March 2023

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