Author Topic: Just made a large student loan payment  (Read 3311 times)

TechMike

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Just made a large student loan payment
« on: November 01, 2015, 09:34:55 AM »
After probably six years of making minimum student loan payments on the super extended repayment plan... my wife and I finally made a $3500 payment to the highest interest rate student loan we had.

My wife and I both have sizable student loan amounts, totallying about $70K. All of it federal stafford loans. We've never thought about spending or where our money was going. To make things easy, we both had our loans on extended repayment plans, barely making a dent in them with each minimum payment. Two kids later and we just never really got there with the student loans.

With my wife going back to school for a Ph.D. program, we actually needed to start paying for day care, and I realized our annual income wouldn't go as far. Some how, I ended up here, with all of you mustachians. After some consideration, we sold our second car (that we owned for 10 months and only had driven 1200 miles). Took the money from the sale of it and the left over from starting to curb out spending and was able to make a significant debt in them.

This is just the start to our journey, which we hope to have a large enough 'stache for us to retire sometime around 2030.

Imonaboat

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Re: Just made a large student loan payment
« Reply #1 on: November 02, 2015, 05:53:38 PM »
Keep up the good work! Paying down debt is addictive and I'm sure you will get there in no time.

seemsright

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Re: Just made a large student loan payment
« Reply #2 on: November 02, 2015, 09:28:20 PM »
Keep up the good work! Paying down debt is addictive and I'm sure you will get there in no time.
+1
I have to agree paying down debt is addictive.

MrsPfennig

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Re: Just made a large student loan payment
« Reply #3 on: November 03, 2015, 01:49:37 AM »
It feels amazing, doesnt it? I'm celebrating every time we have paid another one off.

FrugalFan

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Re: Just made a large student loan payment
« Reply #4 on: November 03, 2015, 06:02:41 AM »
Congrats! Think of the extra cash flow you will be able to devote to savings once you pay off your loan!

Eric222

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Re: Just made a large student loan payment
« Reply #5 on: November 03, 2015, 06:09:44 AM »
Keep up the good work! Paying down debt is addictive and I'm sure you will get there in no time.
+1
I have to agree paying down debt is addictive.

+100
I'm still new around here, but I get all excited when I make an extra payment and it ALL goes to principal. 

MudDuck

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Re: Just made a large student loan payment
« Reply #6 on: November 03, 2015, 06:32:16 AM »
+1 congratulations!


pompera_firpa

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Re: Just made a large student loan payment
« Reply #7 on: November 03, 2015, 07:38:35 AM »
AWESOME!!!

TechMike

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Re: Just made a large student loan payment
« Reply #8 on: November 03, 2015, 12:28:57 PM »
Thanks for the encouragement. It's great to see such a large decline after years of barely making dents.

enki

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Re: Just made a large student loan payment
« Reply #9 on: November 04, 2015, 08:42:17 PM »
Congrats on that big step. I looked long and hard at my finances, figured out just how much I could aim at what is left of my student loan, added a bit more and started making huge payments at the start of each month. These are almost 7x the minimum. Soon I'll have more cash than debt and it will be tempting to lose the liquidity and debt all at once. I went through a couple bad spots years back, so I think I'd rather keep the cash on hand to ward of transmission explosions and the like.

clarkfan1979

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Re: Just made a large student loan payment
« Reply #10 on: November 08, 2015, 09:19:19 AM »
Does the University have daycare on the campus? You typically get a discount if you are a student. Keep up the good work.

I have 44.5K of student loans myself. Approximately 30K is at 6.55% and 14.5K is at 2.08%. I've been paying about 500/month, but it's time to ramp it up to 800-1000/month. Thanks for the inspiration.