Goal: Pay Off My Student Loans

Hello world!

I was up at 5:00 this morning to attend my first-ever Body Pump class, so I’m in an especially chipper mood today.


And now to bring this party to a screeching halt – I’d like to discuss my student loan situation. The first time I blogged about this subject was roughly 10 months ago, when I had about $33,000 of debt.

At the time, my plan was to pay just a little extra each month and continue contributing aggressively to my savings and investment accounts. My rationale was simple, and not unsound: my student loans carried the low interest rate of 2.07%, and I could probably make more than that investing in index funds.*

Fast forward 10 months ——> my philosophy has changed. I want that debt to go away. Right now. 

Why the sudden change?

Two reasons:

  1. My interest rate just increased to 2.4%. Because this is literally the first time my rate has changed since I graduated college, I was under the impression I had a fixed rate (stupid rookie mistake). After playing around with a debt repayment calculator, I realized this “small” increase would result in paying almost $1,000 more in interest over the course of repayment. And of course, the federal government has the power to change my rate each year, so who knows where it will go from here? I don’t like any of this.
  2. This blog: No More Harvard Debt. This guy paid off $90,000 in student loans in 7 months!  His approach was extreme: he liquidated retirement accounts, took on roommates, and sold prized possessions, among other things. His razor-sharp focus on the goal of paying off his debt has inspired me to do the same.

For the last several years, my student loans have been paid via automatic bill pay. This is generally a good thing – I’ve never been late on a payment, and I don’t really have to think about it.

But on the flip side – I don’t really have to think about it. Sure, I budget for it faithfully every month, but that only requires 1.8 seconds of thought. Until last August, I never took the time to dig into the numbers and consciously track my progress. Lacking consciousness about it meant that I never really felt the burden of the debt. 

My, how things have changed. This debt now feels like an anchor weighing me down, sabotaging my path to financial freedom, and ultimately holding me back from the life I dream about.

(I’m only being a little dramatic, I swear.)

The Nitty Gritty

Here are some hard numbers/facts:

  • I started with $38,290 of debt in August of 2006.
  • I have 10 separate loans ranging in amount from $852 – $4,123. (Yes, I have pursued consolidation, but was told my interest rate couldn’t be beaten.)
  • In August of 2015 – when I got motivated to pay it down faster – I owed approximately $33,000.
  • Since August, I have paid $4,062 extra toward my student loans. This is in addition to my automated payment each month.
  • I currently owe $27,748.
  • I’m on a graduated repayment plan. I began with a monthly payment of $118 upon graduation, and currently pay $153. This number will steadily increase every two years to $452 in the year 2027.

Okay, stop right there. There is no freakin’ way I’ll still be paying on these loans in 2027! I’ll be 45 years old for Heaven’s sake! No. Just…no.

So What’s The Plan?

Naturally, the plan is to pay these suckers off as soon as humanly possible.

Based on my current income, I could pay them off in three years while maintaining the quality of life I’m accustomed to. (For perspective: I’m already super-frugal, but I do budget for a yearly vacation, a few fun weekends per year, and the occasional dinner out.) This would mean paying $500 each month in addition to the automated $153 payment. That’s a decent goal: it will definitely hurt to see that money flying out the window, but I won’t have to feed my family ramen noodles every night for dinner.


But that’s not good enough. Three years is a little too long. I need a stretch goal.

I’m setting a deadline of December 31, 2018 to pay off my student loans. This gives me about 2.5 years to pay off $27,748 on a (paltry) teacher’s salary. To accomplish this, I will need to pay $153 (regular payment) plus $800 extra each month.

That’s a scary number for me.

So Much Cognitive Dissonance

These are all thoughts running through my mind right now:

“But I want to take a trip to San Francisco next summer!”

“But I need to spend $120 on a gym membership so I can go to fitness classes!”

“But my daughter wants to start gymnastics!” (“And she needs cute new clothes for 3rd grade!”)

“But our TV is about to kick the bucket, our couch has seen better days, and our basement is a cold gray dungeon that needs some serious TLC.”

“But I’m 34 years old – I should be able to afford wine that costs more than $6 a bottle!”

“But I want to advance my career and/or learn a new skill. It’s going to take money to do these things!”

“But, but, but…”


Sigh. “But I really need to pay off my student loans.”

To Make Matters Worse…

  • I got an awesome new job, but it comes with an awesome new pay cut. To the tune of $5700 per year.
  • In September we’ll have to start paying for before/after-school childcare for my daughter. To the tune of $400 per month. (I now realize how spoiled we’ve been by not having to pay for this the last three years.)

But On The Bright Side…


Okay, I’ve complained just about enough for one post. Life is good, and I am very blessed. My husband is going to benefit from a decent salary increase soon with his new job. And while I have to take a pay cut this year, it’s only temporary. If I stay the course, I will get a raise of about $10,000 per year next September. Plus, how stinkin’ spoiled am I to have a 2.4% interest rate on my loans?!

I’ve set my deadline, and now I can’t ignore it. Now – how do I actually plan to pay my debt? I’ll save that for another post…

Do you make minimum payments on student loans, or do you try to pay extra?

Do you currently have any “stretch goals?”

What small step did you take to reach one of your goals today?

I made a $1,090 payment toward student loans!


*Some people will disagree that paying off student loans should take priority over saving for retirement and building other assets, particularly when the interest rate is low. That’s okay – I actually share that sentiment. But I feel so burdened by this debt right now that it’s eating away at my soul. And that’s never a good thing, so I just need to get rid of it ASAP.


  1. I set both mine and Jason’s loans up to pay straight payments from the beginning instead of the graduated plan. I’m down to 11k! Jason…not so much. We will be paying on those for a long time.

    I hate student loans! It’s not like I didn’t understand debt when I got them but student loans are way too easy to get, the full weight of what you are taking on isn’t clear in your 20s, it sounds like a good thing in your 20s when they say it will be spread over 20 years because you think low payments, not debt for your whole life, AND the loan amount you can take out are so high. I will take out loans for LP over him starting life out with crippling debt just to go to school. Hopefully things are better when the kids are ready for college.

    Right now we are swinging a 12k a year cost for pre-school so we are already use to LP’s schooling costing a lot.

    • Charlene says:

      11K…that’s awesome! I would love for mine to be down that low. J has more than I do, so between the two of us, we’ve got some hefty debts to pay.

      I agree with you that student loans are way too easy to get, and that the weight of taking them on when you’re so young doesn’t quite “slap you in the face” until you’re older. I make no excuses for myself in taking them on, but I definitely had the perspective of an immature teenager rather than a responsible adult at that time. We are saving for M too so that she doesn’t have to start her career with a ton of debt

      12K per year is crazy!!! I think we paid about half of that for full-time daycare for M! It’s hard to go back to paying that type of bill after being spoiled for the last several years. Oh well…what can you do?

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