Paid of $25,000 loan while still in college

[Foster]

Just paid off my first student loan: a $25,000 Sallie Mae loan that has been bleeding me at 8% interest the past 2 years- while still in school! Only $40,000 to go (this will be gone by 2015). I was fortunate to work at a high-paying job during my senior year and have been able to save up a decent amount.

I just would like to thank MMM and the members for giving me the vision to be fiscally responsible and pay off my loans as soon as possible. When I told my father about this lump-sum payoff, he couldn't understand why I didn't just make monthly payments for the next 25 years and use my savings to "reward myself" for the hard work; needless to say, I don't receive much financial wisdom from my family so this blog has been incredible in the start of my Personal Finance journey.

Thank you everyone!

[Truckman]

Congrats!

My oldest is a junior in high school, so we've been eyeballing colleges lately. Unfortunately we're not really in a position to help her out, except to provide a place for her so she won't have to add room & board to the expense.  I love hearing these stories about getting through college and starting out with little to no debt. Not that your debt was little by far, but clearly you have a good plan to get through it ASAP. Kudos!

[Nancy]

Great job, Foster! At this rate, you'll be done with your loans in no time. Are you also putting some away in an IRA/401K?

[Foster]

Thanks @Truckman! Thinking back now, if I had a stronger financial sense when I was 18 I would've chosen a less expensive state school rather than a 5-year at $50,000/year private school, but then again I wouldn't have the experience/job that I do. Just make sure your kids are educated and know that the loans will need to be repaid, and likely at a crappy interest rate. Feel free to message me if you'd like any guidance on schools/majors.

@Nancy
Yes, I've put away $10,000 in Admiral Shares with Vanguard. I often debate with myself whether to pay off loans aggressively vs fund retirement accounts, and came to the conclusion that I should pay off debt aggressively but be sure to max the Roth each year, since I will never get those years back to contribute.

[Nancy]

Excellent! Good on ya!

[Truckman]

Thanks @Truckman! Thinking back now, if I had a stronger financial sense when I was 18 I would've chosen a less expensive state school rather than a 5-year at $50,000/year private school, but then again I wouldn't have the experience/job that I do. Just make sure your kids are educated and know that the loans will need to be repaid, and likely at a crappy interest rate. Feel free to message me if you'd like any guidance on schools/majors.

@Nancy
Yes, I've put away $10,000 in Admiral Shares with Vanguard. I often debate with myself whether to pay off loans aggressively vs fund retirement accounts, and came to the conclusion that I should pay off debt aggressively but be sure to max the Roth each year, since I will never get those years back to contribute.

Absolutely! PM Incoming, thanks!

[SpeedReader]

Great job!  I wish I'd been so smart when I was your age.  :-)

[Cwadda]

Congrats, OP.  My goal is to pay off my $5400 loan by the end of this year.

Congrats!

My oldest is a junior in high school, so we've been eyeballing colleges lately. Unfortunately we're not really in a position to help her out, except to provide a place for her so she won't have to add room & board to the expense.  I love hearing these stories about getting through college and starting out with little to no debt. Not that your debt was little by far, but clearly you have a good plan to get through it ASAP. Kudos!

Make sure she takes AP classes if she can!

[Truckman]

AP US history this year, and AP Physics, Calculus, and English next year.

Aside from possibly being substituted for college credit (depends on the school), do they help in any other ways?

[Bookworm]

AP US history this year, and AP Physics, Calculus, and English next year.

Aside from possibly being substituted for college credit (depends on the school), do they help in any other ways?

In my experience, they're worth taking just for the challenge alone.  They're demanding and students have to carry a heavy workload and perform at a high level.  They don't just save time and money in college...they create a better mind for college!