It took me a total of 30 months, two and a half years to pay off over $30,000 in student loans, but it has been done.
My student loans were financed out for 10 years, which is typical for these loans. However, I paid them off in just 2.5 years. How did I do this? Dedication, commitment.
It is never easy seeing the majority of your after-tax income go towards something that has already been purchased (tuition) and you don’t see the financial rewards until many years down the road. Bonuses I would receive were also mostly put towards paying down this debt.
My loans carried a 6.8% interest rate. It was because of this that I was so adamant on paying them off as soon as possible. That and the opportunity to put that money into additional investments for my future.
Student loans among recent graduates are at all-time highs, and so is the price of college tuition. I’m glad I got out when I did and don’t have plans to paying for education again. I can breathe a sigh of relief because I know there are others out there with much more debt they have to repay.
I remember a criminal justice class I took back in college where the professor said that the only two for sure ways to get turned down for the FBI were if you had a felony or if you defaulted on a student loan. I’m not sure if that is 100% true, but I do still preach that fact to others today as if it is.
Debt is a big burden no matter what kind of debt it is. Most young people and college students don’t understand what they are getting themselves into when they enter college. They don’t realize that the thousands and hundreds of thousands of dollars they borrowed for their education will have to be eventually re-payed with their salaries.
However, with all that being said, I am glad I went to college. I wouldn’t have had the career opportunities or money had I decided not to go, but that was never an option. Student loans are a fact that you have to accept if you are already entrenched in the college life. For those of you graduating, there are steps you can take to help get yourself off to the best financial start possible. If you are interested in getting your financial life off to the right start then email me for a Financial Foundation Consultation. I will go over anything you need me to budget, debt burden, buying a house, where to invest, etc. Consultations can be done over the phone or via webcam.
Budget Smart, Invest Wise