Tuesday, November 18, 2014

Goal Complete: Pay Off Student Loan

Well I have some good news, a weight has been lifted and one of my student loan accounts is paid off in full! At the beginning of the year my loan stood at just over $20,000 and as of last week it is now $0! It feels good have this proverbial monkey off my back

As I have written before, originally my intention was not to pay down this debt early and instead focus on building wealth. But after filing my 2013 taxes I realized that:

  1. I was not getting a tax benefit for the interest paid (due to my income level being to high, first world problems)
  2. After looking into my loans in more detail I was reminded that my interest rate was at almost 7% 
  3. The scheduled payments I was making were not even covering interest!

So I made the decision in February or March to make paying of this account a priority, and I did just that! Started paying down the debt at $2,000 a month a now I am free and clear of this debt. Here is the proof:

I actually thought I had paid off this debt about a week earlier but it turns out that I incurred $0.18 of interest between when I scheduled the payment and when it was processed so I had to make one final  payment of a measly 18 cents. But it doesn't matter now!

Unfortunately this does not make me debt free yet. I still have an additional $7,000 or so in student loans and another $10,000 left on my car loan. I definitely won't be paying down the car loan early, it is sitting at only 3.60% interest. I haven't decided yet what I will do about the remaining student loan but I probably won't be paying it off early, I'll have to give it some more thought.

What about you? Have you paid off any debt recently?

Thanks for stopping by,



  1. Congratulations are really in order! Paying off $20K in loans in only one year is extremely impressive, and you should be really proud of yourself that you accomplished that. Great job!

    1. Thanks DD, I am very happy to have this paid off. Definitely a real load off and now I can get back to putting my money to real use!

  2. That's a great accomplishment paying off that large loan in the span of less than a year. I'm sure it felt awesome seeing your loan balance at $0. Keep on inspiring others with your story.

    1. Yes it definitely feels great to have that off my back! Thanks for stopping by!