Author Topic: Pay off my $20k in student loans in 5 months  (Read 8072 times)

apfroggy0408

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Pay off my $20k in student loans in 5 months
« on: May 07, 2014, 08:02:59 PM »
As noted in my new journal http://forum.mrmoneymustache.com/journals/working-on-dat-mustache/ I have about $20k in student loans. I have enough money now to pay it off all at once but I'm not quite there mentally to do that, since before following the ways of the stache I've been saving for a 20% downpayment on a house. Having said that I believe the middle ground I'm comfortable with is paying off 1 loan at a time starting with the highest interest rates going down.

Here's the breakdown

Total Current Balance:    $20,882.98 May 15th 2014
                                        $13,437.48 April 15th 2014
                                           $9,896.08  June 12th 2014
                                                $5,401.78 July 22nd 2014
                                                   $0,000.00 Aug 4th 2014


Loan Type | Amount Owed | Interest
Direct Sub Stafford Loan -       $5,493.42 5,424.35 $5,401.78  -   3.4% Fixed
Direct Unsub Stafford Loan -   $2,264.26   -   6.8% Fixed
Direct Sub Stafford Loan -       $4,526.45 4,471.73   -   4.5% Fixed
Direct Unsub Stafford Loan -   $2,403.79   -   6.8% Fixed
Federal Stafford Loan -           $3,544.16   -   5.6% Fixed
Federal Unsub Stafford Loan -$2,541.50   -   6.8% Fixed

Will be attacking highest interest rate/highest balance.

Will start on the 15th when the next paycheck comes in.

thanks for checking in
« Last Edit: August 05, 2014, 07:16:57 AM by apfroggy0408 »

apfroggy0408

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Re: Pay off my $20k in student loans in 5 months
« Reply #1 on: May 08, 2014, 09:53:56 AM »
Really upset with how little I knew about the loans I got during school. I don't blame anyone but myself for not knowing what I was getting into. These 5 months might be shortened even more we'll see.

payitoff

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Re: Pay off my $20k in student loans in 5 months
« Reply #2 on: May 08, 2014, 10:10:17 AM »
Good for you, 5 months should be a rewarding journey! you can do it!

apfroggy0408

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Re: Pay off my $20k in student loans in 5 months
« Reply #3 on: May 08, 2014, 12:08:51 PM »
Good for you, 5 months should be a rewarding journey! you can do it!

Thanks! It will be hard at first but will be good in the long run.

rocksinmyhead

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Re: Pay off my $20k in student loans in 5 months
« Reply #4 on: May 08, 2014, 01:42:07 PM »
Really upset with how little I knew about the loans I got during school. I don't blame anyone but myself for not knowing what I was getting into. These 5 months might be shortened even more we'll see.

oh god, I feel ya. my parents made the minimum payments on my Parent PLUS loans from undergrad while I was in grad school for 2 years (free, so no more debt there, thankfully) but I was still $70k in the hole when I finished school and started paying them myself in 2012. my interest rates sucked too, I had a lot of 6.8% loans. I really had absolutely no idea what was going on with my loans when I was taking them out... thank god I have a good job now. almost done paying them off and it feels so awesome!! you can do it and it will feel SO good to be free!!! :)

apfroggy0408

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Re: Pay off my $20k in student loans in 5 months
« Reply #5 on: May 09, 2014, 08:20:04 AM »
The more and more reading I'm doing I'll probably be cutting this down more and more. The way of the stache is growing in me, might just take out all these 6.8% loans at once.

Sonorous Epithet

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Re: Pay off my $20k in student loans in 5 months
« Reply #6 on: May 09, 2014, 08:27:35 AM »
Really upset with how little I knew about the loans I got during school. I don't blame anyone but myself for not knowing what I was getting into. These 5 months might be shortened even more we'll see.

When I graduated I knew I had student loans but I didn't even know the balance, let alone the rates! Suddenly realizing that I had $15,000 of debt I barely remembered taking out is what got me serious about personal finance to begin with. Sometimes that shock is just what you need to set you on the right path.

apfroggy0408

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Re: Pay off my $20k in student loans in 5 months
« Reply #7 on: May 09, 2014, 11:04:41 AM »
We all have to learn one way or another.

apfroggy0408

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Re: Pay off my $20k in student loans in 5 months
« Reply #8 on: May 10, 2014, 01:20:01 PM »
Decided to take out all 3 of my 6.8% loans at once, those will be paid off on the 15th. Will update loan amounts then.

The stache inside me is growing and looks like I'll have them paid off well before the 5 months, as long as I keep to taking out at least 1 loan a month.

apfroggy0408

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Re: Pay off my $20k in student loans in 5 months
« Reply #9 on: May 17, 2014, 11:08:37 AM »
3 loans paid off, original post updated

Suit

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Re: Pay off my $20k in student loans in 5 months
« Reply #10 on: May 17, 2014, 02:45:28 PM »
Well done!

nushagak

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Re: Pay off my $20k in student loans in 5 months
« Reply #11 on: May 20, 2014, 12:27:44 PM »
Congrats OP. Over a third of the way there and only a few weeks in.

apfroggy0408

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Re: Pay off my $20k in student loans in 5 months
« Reply #12 on: May 23, 2014, 10:49:51 AM »
Thanks guys!

Will probably take out the next two soon!

apfroggy0408

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Re: Pay off my $20k in student loans in 5 months
« Reply #13 on: June 12, 2014, 06:14:48 AM »
Original post updated, 5.6% loan paid.

exceljunkie

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Re: Pay off my $20k in student loans in 5 months
« Reply #14 on: June 13, 2014, 11:40:37 AM »
Congrats! Keep up the good work.

apfroggy0408

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Re: Pay off my $20k in student loans in 5 months
« Reply #15 on: July 22, 2014, 07:26:21 AM »
Original post updated, 4.5% loan paid off.

One more to go!

rocksinmyhead

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Re: Pay off my $20k in student loans in 5 months
« Reply #16 on: July 22, 2014, 07:42:55 AM »
Woohoo!!!

Rebecca Stapler

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Re: Pay off my $20k in student loans in 5 months
« Reply #17 on: July 22, 2014, 10:15:33 AM »
Awesome! Keep up the great work!!

nushagak

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Re: Pay off my $20k in student loans in 5 months
« Reply #18 on: July 23, 2014, 07:37:32 PM »
Amazing, inspiring work OP. Keep it up.

apfroggy0408

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Re: Pay off my $20k in student loans in 5 months
« Reply #19 on: July 24, 2014, 09:03:45 AM »
Thanks guys!

gobius

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Re: Pay off my $20k in student loans in 5 months
« Reply #20 on: August 04, 2014, 02:33:22 PM »
Looks like you will be done this month; good work.

apfroggy0408

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Re: Pay off my $20k in student loans in 5 months
« Reply #21 on: August 04, 2014, 06:37:51 PM »
Looks like you will be done this month; good work.

Thanks Gobius!

Actually I just sent the payment last week and it has cleared the bank but not the loan website so I haven't wanted to say anything til then, but you got me excited lol!

Original post updated.

Student loans gone in less than 5 months, thanks for the support everyone.
« Last Edit: August 04, 2014, 06:41:08 PM by apfroggy0408 »

Suit

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Re: Pay off my $20k in student loans in 5 months
« Reply #22 on: August 04, 2014, 07:24:39 PM »
Nice!!

nushagak

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Re: Pay off my $20k in student loans in 5 months
« Reply #23 on: August 04, 2014, 07:35:09 PM »
Really outstanding work OP. Kudos and slow claps all around.

apfroggy0408

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Re: Pay off my $20k in student loans in 5 months
« Reply #24 on: August 05, 2014, 07:17:35 AM »
Nice!!

Really outstanding work OP. Kudos and slow claps all around.

Thanks guys. =D

gobius

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Re: Pay off my $20k in student loans in 5 months
« Reply #25 on: August 05, 2014, 11:46:24 AM »
Looks like you will be done this month; good work.

Thanks Gobius!

Actually I just sent the payment last week and it has cleared the bank but not the loan website so I haven't wanted to say anything til then, but you got me excited lol!

Original post updated.

Student loans gone in less than 5 months, thanks for the support everyone.

LOL I remember when I had that too, when I was waiting for the website to update.  I took a screen-shot when it finally changed to $0.00 balance and have it saved on my computer still.

 

Wow, a phone plan for fifteen bucks!