Saturday, January 31, 2015

Getting Started

Welcome to my blog. I created this as a way to motivate myself and others to pay off student loan debt and realize that there is more to life than money and working all the time. Let’s rewind to around 2007-2008. I was working on my Master’s degree and doing an internship and working 40 hours a week and an extra 20 hours a week for an internship. I was exhausted and have no idea how I made in through that year. I never felt the relief that I felt on the day that I graduated-no more papers, no more final exams, no more unpaid internship. The six month grace period came and went and I finally received my monthly student loan bill of $235 and a grand total of $35,000 in student loans.

When you see a huge number like $35,000, you try not to think about it, just like a mortgage payment. You blindly go through each month making the minimum payment because that it the way that it is supposed to be-right? WRONG. I didn’t want to spend the next 30 years of my life making the minimum payments. That would mean that I would have this payment until I am 56 years old. I’m sure there are better things that I want to spend my money on by the time I’m 56.

So after making 120 payments on time, my monthly payment dropped to $204.36. I also opted to have the monthly payment taken out automatically, which also gave me a little break on the interest that I was paying.

So here it is 2015, and I have paid off a total of 3 of my 12 Stafford Loan Installments by throwing money at the smallest of the loans to get them paid off. I was amazed by the rush that I felt when one more was eliminated out of the list. I still have a long way to go and hope that you can experience the same rush that I have by paying off those student loans.

So here is where I am at now:

I owe a grand total of: $29,606.98 as of 1/19/15 and my loans are separated into the following:

Stafford Loans     Loan Balance     Interest Rate

1-01                     $4,398.13                  2.33

1-03                     $4,398.09                  2.33

1-04                     $1,291.48                  2.33

1-05                     $2,199.20                  2.33

1-07                     $3,232.29                  2.33

1-08                     $4,174.08                  2.33

1-09                     $1,199.54                  2.33

1-10                     $4,559.93                  6.8

1-12                     $4,154.24                  6.8

Grand Total:$29,606.98

The loan that I am currently attacking is the 1-04. Last year, I pretended that I did not get a raise so the extra $120 a month that I get goes towards the extra student loan payment on top of the current monthly payment of $182.73. I also add any extra money like from the items that I sell at my local consignment shop, bonuses from work or any extra money that may come my way.

I plan to show you how to pay off student loans as quickly as possible and help others to do the same and get excited about the process of this as well so you can live life free from the anxiety of student loan debt and start living the life that you want to live.