Author Topic: Student Loan Challenge (2019 Edition)  (Read 3531 times)

appleseed

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Re: Student Loan Challenge (2019 Edition)
« Reply #50 on: March 14, 2019, 12:57:29 PM »
Congratulations!!

marblejane

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Re: Student Loan Challenge (2019 Edition)
« Reply #51 on: March 15, 2019, 07:35:39 PM »
Congratulations!!

thank you!! Still hasn't really sunk in...

UnexpectedExpenseExpector

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Re: Student Loan Challenge (2019 Edition)
« Reply #52 on: March 20, 2019, 04:13:13 PM »
Congratulations @eightyeighttoone @imadandylion @marblejane that is awesome!

Here is our March Update:

2018
Jul: 34,235.29
Aug: 31,126.76
Sep: 30,670.30
Oct: 29,554.17
Nov: 26,987.46
Dec: 25,869.79

2019
Jan: 23,886.93
Feb: 21,695.55
Mar: 19,550.64
...

2019 Jul: 0.00 (GOAL)[/b]

Getting excited to get rid of these.  Leaving July as the goal to be free from them but actually looking like we'll be able to clear them by end of May!  Keep up the awesome progress everyone!




catorbe

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Re: Student Loan Challenge (2019 Edition)
« Reply #53 on: March 27, 2019, 07:49:25 AM »
I'm currently at $13,847.52.

Little over 5 weeks later and I'm down to $12,410. Normal payment of $300 coming on 4/1. This will all be applied to the 3.61% interest "pile" and knock the smaller of 2 loans at that rate to under $500. Once that is gone I'll reallocate the remaining payments to the final 3.61% loan as the focus, and from then on out it's all on autopilot. I won't have to mess with MGL about how to allocate my payments any more!

Civex

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Re: Student Loan Challenge (2019 Edition)
« Reply #54 on: March 28, 2019, 07:20:16 PM »
Another year still in the student loan challenge. Great people, but this is my least favorite club. Copying from the 2018 thread, missed the 2017, and I think I was in the 2016 (or was it 2015?) thread.


Original balance-$90,400 @ 5.01 7/2014
End of January '18 balance-$64,481
End of June '18 balance-$55,411
Dec. 2018-$47,258 ($1250 payment)
March 2019-$44,088.31 ($1250 payment)

Hoping to knock this loan down into the twenty thousands by year end. Recently paid off my auto loan, so after I top up my E-fund, I should be able to increase my payment by $500-700/month. This thing doesn't know when to die and I don't feel like I'm making a lot of progress. The rate is just low enough and income is just high enough that I feel obligated to max all tax advantaged accounts (401k, HSA, FSA, RothIRA, and 529) before putting extra towards my student loan and that makes it decrease.so.painfully.slowly. What a first world problem.

catorbe

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Re: Student Loan Challenge (2019 Edition)
« Reply #55 on: March 29, 2019, 07:33:22 AM »
...before putting extra towards my student loan and that makes it decrease.so.painfully.slowly. What a first world problem.

It will make the final payoff that much sweeter! Keep it up!!!

zeli2033

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Re: Student Loan Challenge (2019 Edition)
« Reply #56 on: March 29, 2019, 07:35:45 AM »
End of March Update

2/28/18: $63,221 [Starting Balance]
...
12/31/18: $36,419
1/15/19: $32,900
2/3/19: $30,351
2/16/19: $27,889
3/5/19: $25,209
3/29/19: $20,625 (-4584)

Bonus 1 of 3 came in today so we were able to put a good amount toward the student loan. After today's payment, we only have 3 loans left from the original 14 - so close! Still tracking to have these paid off at end of April assuming everything goes according to plan.

outdoorsyfreedom

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Re: Student Loan Challenge (2019 Edition)
« Reply #57 on: April 04, 2019, 04:36:12 AM »
January Starting Balance: 58245.53
Min. Payment: 1178.77
Extra payment: 4821.79

January Ending Balance: 52244


February Payments:

Min. Payment: 1178.77
Extra Payment: 4276.39

February Ending balance: 46940.55

March Payments:

Min Payment: 1178.77
Extra Payment: 8128.60

March Ending Balance: 37,753.86

March was a bit of a unique month in that I received my yearly bonus and it was a 3-paycheck month. I get paid biweekly, so usually only 2/month. This allowed me to put a bit extra towards the loans.

Also, to those of you who since paid off their loans, Congratulations!!

Lady SA

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Re: Student Loan Challenge (2019 Edition)
« Reply #58 on: April 04, 2019, 01:38:37 PM »
I can join this thread! Yay! DH and I started in early 2014 with $150k SLs combined. We are now down to just under $7k! Not a typo :D Our loans will be vanquished in April 2019.

Starting in 2016, we started maxing our 401ks, HSA, and IRAs, and got our living expenses down to the point where we had an extra $900 per month left over on top of our min SL payments of $2300 per month. So we've been doing the avalanche debt method with $3200 total in payments per month for what seems like forever. This month we paid off the second-to-last loan, and just today I switched the monthly auto-payment for the very last small loan (at 4.6%) to the full $3200.

After the loans are done, that $38k per year is going directly to our brokerage account and the beginnings of a house downpayment.

Its official - our SLs have been vanquished!!!

05-2014 -- ~$150k starting balance at graduation
11-2015 -- ~$127k, found MMM
09-2016 -- $99k! Finally out of the 6 figures!
11-2016 -- Finally reached positive net-worth!
01-2019 -- $9k! Finally out of the 5 figures!
04-2019 -- $0!!!!!!!!!!!!!!!!!!!!!!!!!! DONE!! Today is our last EVER payment!

We paid these off in 4 years and 11 months, just under our goal (that we made right after we graduated) to kill them in 5 years.
Damn, it feels so good to be FREE!!

haypug16

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Re: Student Loan Challenge (2019 Edition)
« Reply #59 on: April 04, 2019, 02:58:13 PM »
Congrats Lady SA!!! It must feel great to be free of those payments.

UnexpectedExpenseExpector

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Re: Student Loan Challenge (2019 Edition)
« Reply #60 on: April 08, 2019, 11:14:04 PM »
Way to go @Lady SA !  That's got to feel awesome!

Keep at it @Civex  they're days are numbered!

Here is our April Update:

2018
Jul: 34,235.29
Aug: 31,126.76
Sep: 30,670.30
Oct: 29,554.17
Nov: 26,987.46
Dec: 25,869.79

2019
Jan: 23,886.93
Feb: 21,695.55
Mar: 19,550.64
Apr: 8,257.92
...

2019 Jul: 0.00 (GOAL)


We decided to pull some funds out of the taxable investment accounts to knock these down to under 10k.  July should be easily reachable, we're going to push and try and have these cleaned up by end of May.  Keep up the great progress everyone!

catorbe

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Re: Student Loan Challenge (2019 Edition)
« Reply #61 on: April 10, 2019, 08:59:26 AM »
I'm currently at $13,847.52.

Little over 5 weeks later and I'm down to $12,410. Normal payment of $300 coming on 4/1. This will all be applied to the 3.61% interest "pile" and knock the smaller of 2 loans at that rate to under $500. Once that is gone I'll reallocate the remaining payments to the final 3.61% loan as the focus, and from then on out it's all on autopilot. I won't have to mess with MGL about how to allocate my payments any more!

Under $12k!

zeli2033

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Re: Student Loan Challenge (2019 Edition)
« Reply #62 on: April 15, 2019, 08:24:38 AM »
2/28/18: $63,221 [Starting Balance]
...
12/31/18: $36,419
1/15/19: $32,900
2/3/19: $30,351
2/16/19: $27,889
3/5/19: $25,209
3/29/19: $20,625
4/15/19: $17,550 (-3075)

Looking ahead to the next paycheck where these should be paid off due to it being bonus season.

haypug16

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Re: Student Loan Challenge (2019 Edition)
« Reply #63 on: April 15, 2019, 11:40:58 AM »
Mid April Update:
January 1st 2019 - $46,919.36
January 31st 2019 - $46,137.25
February 27th 2019 - $45,339.55
March 31st 2019 - $44,518.99
April 15th 2019 - $43,932.84

2019 Goal 
$2,986.52/$10,800

I guess I forgot to do an end of March update. whoops.

Cool Friend

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Re: Student Loan Challenge (2019 Edition)
« Reply #64 on: April 16, 2019, 12:37:10 PM »
April Update (rounded figures)!  Decided to just fuckin' go for it and kill this off ASAP.

January: $7,000
February:$6,000
March:$4,700
April: $3,500

If I keep this pace up, I should be able to kill them by end of summer at the latest!

Related question: do you guys plan on doing anything special to celebrate once you knock them out?  This is a huge milestone for me (thought I would be paying this off for another decade at least), and I want to give myself some kind of symbolic pat on the back, but I've never been one to get myself a nice gift or pamper myself in any way.

Rimu05

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Re: Student Loan Challenge (2019 Edition)
« Reply #65 on: April 16, 2019, 02:49:45 PM »
My goal is at least $4000 to student loans this year.

Recent payment: 282.56

April Balance: $26,340.70

Sigh, sucks having these.

Kem

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Re: Student Loan Challenge (2019 Edition)
« Reply #66 on: April 16, 2019, 07:45:17 PM »
My view is a bit different on these.  I graduated in 05 with over 100k in private SL.  Every big rate drop, credit score improvement, etc I looked into a fresh 20 year refi. Currently on a fresh 20 year 5.01%fixed which gives me a min payment of $280/m (and the low payment floor gives peace of mind) .     I actually pay $450/m which will payoff the loan in 10 years - - - - when I plan on crossing $1M liquid net worth and when my eldest daughter will be wrapping up high school.
.
Edit:  I view the mortgage in the same way... At 3.875% fixed its hard to get excited about an early payoff.  Am I nuts that for the most part I invest the difference rather than paying off the SL?  I could have it paid off in a bit over a year at the expense of no cash set aside or invested.... Or I could even pull out Roth contributions / taxable from VTI to wioe it out today.     
.
It just feels like the cash in my hand/working for me holds more value and mental sanity than tossing it at some bank.
« Last Edit: April 16, 2019, 08:03:17 PM by Chris.Kem »

Malkynn

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Re: Student Loan Challenge (2019 Edition)
« Reply #67 on: April 17, 2019, 04:01:50 AM »
My view is a bit different on these.  I graduated in 05 with over 100k in private SL.  Every big rate drop, credit score improvement, etc I looked into a fresh 20 year refi. Currently on a fresh 20 year 5.01%fixed which gives me a min payment of $280/m (and the low payment floor gives peace of mind) .     I actually pay $450/m which will payoff the loan in 10 years - - - - when I plan on crossing $1M liquid net worth and when my eldest daughter will be wrapping up high school.
.
Edit:  I view the mortgage in the same way... At 3.875% fixed its hard to get excited about an early payoff.  Am I nuts that for the most part I invest the difference rather than paying off the SL?  I could have it paid off in a bit over a year at the expense of no cash set aside or invested.... Or I could even pull out Roth contributions / taxable from VTI to wioe it out today.     
.
It just feels like the cash in my hand/working for me holds more value and mental sanity than tossing it at some bank.

Yep.
If I could refi mine or pay a lot less, I would.
I'm not in the US and my loan was refinanced as a business loan, so I don't have the refi options and long payback timelines that you have.

It's not my loan that's a weight on me, it's the large mortgage sized mandatory monthly payment that's a pain in my ass.

I have no choice but to have mine paid off in 3 years, and it's not the stupid account balance that I'm going to be excited not to see anymore, it's the nearly $3K withdrawal mid month that I'll be excited to not see anymore. If it was under $1000, I wouldn't even care. 

Kem

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Re: Student Loan Challenge (2019 Edition)
« Reply #68 on: April 17, 2019, 04:55:11 AM »
Oh goodness!  That's rough Malkynn :/

Malkynn

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Re: Student Loan Challenge (2019 Edition)
« Reply #69 on: April 17, 2019, 05:03:32 AM »
Oh goodness!  That's rough Malkynn :/

It's certainly not fun, but remember, I started with $420K of debt

Kem

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Re: Student Loan Challenge (2019 Edition)
« Reply #70 on: April 17, 2019, 06:05:00 AM »
3 years will fly by Malkynn :)
That's a sizable monthly chunk that'll be freed up.
Have you defined plans for the 36K/year?  Besides VTI/VTSAX/or equivalent that'd be a nice down payment on 1 rental property a year :).   Or... I suppose... Lifestyle creep is an option (flees from mob).

Malkynn

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Re: Student Loan Challenge (2019 Edition)
« Reply #71 on: April 17, 2019, 06:26:12 AM »
3 years will fly by Malkynn :)
That's a sizable monthly chunk that'll be freed up.
Have you defined plans for the 36K/year?  Besides VTI/VTSAX/or equivalent that'd be a nice down payment on 1 rental property a year :).   Or... I suppose... Lifestyle creep is an option (flees from mob).

I have absolutely no desire for 3 years to fly by. The next 3 years are going to be very interesting and exciting and I intend to live the hell out of them.

Just bought a second property actually.
I have no idea what I will do. My career is tremendously diversified and fluid, I work in 3 distinctly different but related disciplines, and I have absolutely no idea where my focus will be in 3 years.

I'm not a employee/paycheque player, my income is whatever I choose it to be based on how much energy I decide to put towards various projects.

I may cut back, I may ramp up, I have no idea and I prefer it that way. I used to make plans until better options started showing up and I decided that being open to possibilities is a better path for me than making plans.
« Last Edit: April 17, 2019, 09:55:12 AM by Malkynn »

Civex

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Re: Student Loan Challenge (2019 Edition)
« Reply #72 on: April 17, 2019, 07:13:47 AM »
Another year still in the student loan challenge. Great people, but this is my least favorite club. Copying from the 2018 thread, missed the 2017, and I think I was in the 2016 (or was it 2015?) thread.


Original balance-$90,400 @ 5.01 7/2014
End of January '18 balance-$64,481
End of June '18 balance-$55,411
Dec. 2018-$47,258 ($1250 payment)
March 2019-$44,088.31 ($1250 payment)

April 2019-$42,038 ($1250 auto payment and $1k extra towards principle)

haypug16

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Re: Student Loan Challenge (2019 Edition)
« Reply #73 on: April 17, 2019, 09:27:25 AM »
Related question: do you guys plan on doing anything special to celebrate once you knock them out?  This is a huge milestone for me (thought I would be paying this off for another decade at least), and I want to give myself some kind of symbolic pat on the back, but I've never been one to get myself a nice gift or pamper myself in any way.

My reward is to put all the money that was going to Student Loans into a Vanguard account and watching my worth take off even more causing me to be able to retire years early. :)

Malkynn

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Re: Student Loan Challenge (2019 Edition)
« Reply #74 on: April 17, 2019, 09:54:23 AM »
Related question: do you guys plan on doing anything special to celebrate once you knock them out?  This is a huge milestone for me (thought I would be paying this off for another decade at least), and I want to give myself some kind of symbolic pat on the back, but I've never been one to get myself a nice gift or pamper myself in any way.

I will likely be doing kitchen renos in our new home. We just bought it, and I like living somewhere for a good amount of time before deciding on changing it. It has a whole empty eat-in section of the kitchen, which I was to add storage and maybe counter space to. 2.5 years is a perfect amount of time to live and cook there before committing to structural changes, so that will be my reward.
« Last Edit: April 17, 2019, 09:55:55 AM by Malkynn »

zeli2033

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Re: Student Loan Challenge (2019 Edition)
« Reply #75 on: April 17, 2019, 05:24:35 PM »
Related question: do you guys plan on doing anything special to celebrate once you knock them out?  This is a huge milestone for me (thought I would be paying this off for another decade at least), and I want to give myself some kind of symbolic pat on the back, but I've never been one to get myself a nice gift or pamper myself in any way.

My reward is to put all the money that was going to Student Loans into a Vanguard account and watching my worth take off even more causing me to be able to retire years early. :)

SAME! With the exception of blasting the news in every thread here that I can justify - cannot wait for that day!

Rimu05

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Re: Student Loan Challenge (2019 Edition)
« Reply #76 on: April 18, 2019, 02:32:20 PM »
My view is a bit different on these.  I graduated in 05 with over 100k in private SL.  Every big rate drop, credit score improvement, etc I looked into a fresh 20 year refi. Currently on a fresh 20 year 5.01%fixed which gives me a min payment of $280/m (and the low payment floor gives peace of mind) .     I actually pay $450/m which will payoff the loan in 10 years - - - - when I plan on crossing $1M liquid net worth and when my eldest daughter will be wrapping up high school.
.
Edit:  I view the mortgage in the same way... At 3.875% fixed its hard to get excited about an early payoff.  Am I nuts that for the most part I invest the difference rather than paying off the SL?  I could have it paid off in a bit over a year at the expense of no cash set aside or invested.... Or I could even pull out Roth contributions / taxable from VTI to wioe it out today.     
.
It just feels like the cash in my hand/working for me holds more value and mental sanity than tossing it at some bank.

For me, the interest simply isn't worth it. I have 26K left and noticed I pay $98 in interest monthly. At my income, $98 is a lot. I have been paying the minimum to cover the payment in 10 yrs but from the calculators online, that is easily thousands of dollars more in interest. Also, I feel it's impeding my mobility. I want to explore options that allow me to move to different parts of the world yet with the student loans, that is not a risk I am willing to make.

therethere

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Re: Student Loan Challenge (2019 Edition)
« Reply #77 on: April 18, 2019, 02:42:35 PM »
My view is a bit different on these.  I graduated in 05 with over 100k in private SL.  Every big rate drop, credit score improvement, etc I looked into a fresh 20 year refi. Currently on a fresh 20 year 5.01%fixed which gives me a min payment of $280/m (and the low payment floor gives peace of mind) .     I actually pay $450/m which will payoff the loan in 10 years - - - - when I plan on crossing $1M liquid net worth and when my eldest daughter will be wrapping up high school.
.
Edit:  I view the mortgage in the same way... At 3.875% fixed its hard to get excited about an early payoff.  Am I nuts that for the most part I invest the difference rather than paying off the SL?  I could have it paid off in a bit over a year at the expense of no cash set aside or invested.... Or I could even pull out Roth contributions / taxable from VTI to wioe it out today.     
.
It just feels like the cash in my hand/working for me holds more value and mental sanity than tossing it at some bank.

I'm sorta in the same boat in that I'm investing in VTSAX instead of paying down my loans. I check for refinance every 6-12 months to lower the rate.

I started when I was down to 100k in loans. Any extra got send to VTSAX. My rates avg around 4% and by my detailed calcs I'm up $15,500 since Jan 2015. If you have the monthly cashflow and patience it's the way to go.

I don't really understand your strategy on having a 20year and paying off like it's a 10year... Why not refi to a 10-year and take advantage of the lower rate? If you get in a bind you could always refinance to a longer term or use your investments to supplement any cash flow issues.
« Last Edit: April 18, 2019, 02:47:15 PM by therethere »

Kem

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Re: Student Loan Challenge (2019 Edition)
« Reply #78 on: April 18, 2019, 02:58:57 PM »
I considered a 10 year, but at the last refi the term difference was negligible (when compared vs paying 20 year in 10) and worth the premium for the flexibility to drop to a min payment of $280 should the job situation change as an option.   Essentially I'm paying just under $5/month more for an option to reduce my payment by $170/m at any time and for any reason during the length of the loan.   
.
My budget is so highly optimized that this hit was worth the flexibility.
.
Edit:  the only reason I want to pay this off in 10 years is so that it's off my plate in time to buy 2 quads - 1 for my eldest daughter.   It's silly I know, versus investing the difference, however in the scheme of money flows a GREAT deal more is going towards investing
« Last Edit: April 18, 2019, 03:01:27 PM by Chris.Kem »

therethere

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Re: Student Loan Challenge (2019 Edition)
« Reply #79 on: April 18, 2019, 03:14:31 PM »
Not silly. If I was hardcore about the strategy I would refinance to longest term. But I want them gone eventually so I stay with 5 year. It's all about what you're comfortable with.

FireLane

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Re: Student Loan Challenge (2019 Edition)
« Reply #80 on: April 25, 2019, 05:00:08 PM »
I'd like to join this thread!

I finished grad school in 2006 with about $30,000 in loans. Since it was a federal loan with a low interest rate (3.5%), I've been letting it ride. But I'm officially sick of it. It's my last debt remaining, and it's become a weight on my mind out of proportion to what I actually owe. Plus, my planned 2020 FIRE date is approaching, and I want to have zero debt before I quit my job.

As of today, I have $11,700 left. If I stick to the schedule, it won't be paid off till 2026. Instead, I'd like to pay it off by the end of this year or early next year.