I graduated in 2017 with $135k in student loan debt with around 5-6% interest. Right after graduating, I got married, we bought a house and we've had 2 kids since. My student loans ballooned during that time since my IBR payment was not even covering the interest.
With all the current happenings with loan forgiveness programs, I have set my mind on paying it off! Please provide me with your tips!
I am currently making around $6-$7k during school months (no pay during June and July). My husband covers the mortgage and utilities. I pay $2k/mo for childcare and need another $2k/mo for groceries and living expenses. I plan to continue to put $583/mo towards my ROTH IRA. This leaves about $1417-$2417 that I can put towards my loans.
For anyone who has paid off six figures of student loans, please give me your tips!! How did you stay motivated in this marathon?
Is it possible to pay down student loans?
byu/Amazing_Champion1598 inStudentLoans
Posted by Amazing_Champion1598
4 Comments
Just… pay them off?
If your husband is covering basically all homeowner costs *and* you’re able to contribute to retirement, what exactly is the question?
Oh man…are you saying you’re a *teacher* with $150K in student loan debt? 😬 Like public school teacher or professor teacher?
And what do you mean “happenings around forgiveness”? I don’t understand if you’re saying you DO plan to pursue PSLF / TSLF or don’t?
Psychologically speaking you could do the snowball method especially if it’s broken into multiple loans. Wife had like 18 different loans. So you could tackle the smallest ones although the math says you should do the avalanche method and knock out the highest interest ones. It was tough not going to lie but have a strategy for your dollars definitely helps. Figure out your burn rate. And once you have your deductibles covered and have 6 months of expenses covered I would just do your match if you have a 401k and the rest to your debt. Thankfully we got high earning careers and have been able to put 5k a month towards her loans to knock them out as quickly as possible within 2-3 years which in the grand scheme of things isn’t too long. In the meantime we’re not upsizing our home or buying new vehicles but we still budget for healthy groceries and fun activities and trips just nothing to lavish. But afterwards all that money can go to investments etc
Check out Dave Ramsey baby steps. Scorched earth. Pay off debt. No eating out. No vacation. No investment for a few years. My wife and I paid off 120k in 7 years.