In this student loans quarterly series, I share my repayment journey and progress every four months with the hope that I can motivate striving for financial freedom. My goal is to be debt-free before my 27th birthday, and so for the last three years, I’ve been working towards that dream.
When all’s said and done, I’ll be done paying off my debt five years ahead of schedule which is pretty amazing. If need some guidance on how to tackle your student loans, you can check out how to pay off student loans faster.
Why Do My Student Loans Matter?
I am tired of sharing my paycheck with Great Lakes, my student loan provider.
I am tired of paying interest daily.
I want to take advantage of the benefits of living at home with my parents.
I want to build my net worth.
I want to have more savings.
I want to travel more.
Quarter I Accomplishments
As of today (January 12th), my balance is $25,000. I’ve come a long way from $63,000!
My daily interest amount is now $3.94 (that’s a saving of $2.26 a day).
I created a financial plan that tracks my student loan repayment progress and I set an end date. I created a tracking spreadsheet in Excel that lists all of my student loans and every payment I intend to make. I update it every time I make a payment.
Helpful tip: Even if you are several years away from your last payment, pick an end date and keep your eye on the prize. Having a date to look forward to will make a big difference.
What do I want to accomplish in the next 3 months?
Reduce my balance to $23,000 ($2,000 in 3 months).
Apply any tax refunds to my student loans.
I’m looking forward to sharing my progress with you in April 2016. Till then, keep tackling that debt!