Archives for category: student loans

I presented a short version of how I paid off my student loans at the Arizona State Bar today.

Here it is:

In 2008, when I was in the process of paying of my student loans I questioned the decision and the process. Paying $858/month when I was living in Silicon Valley, working at temporary jobs that could end at any time and having a high deductible health insurance plan, it seemed easier to pay the minimum and start saving for health emergencies or retirement. Then I sat down with a calculator and realized how much I can save by accelerating payments.
According to calculator, paying the minimum in student loans (about $858) will take 26 yrs, 9 mo and I would pay— $153,057 in interest (WTF!!!)
If I continued to pay $1358/mo (min plus 500 addtl) the loan would be repaid in 9 yrs 1 month and $453,112 will be paid in interest.
If I doubled the minimum, 7 yrs 9 mo and $36,802 will be paid in interest
To pay off in 5 years, I would need to pay $2420.36/mo and interest will be $22,979.

Big news since the last post: I PAID OFF THE STUDENT LOAN!

$161,560.02 total. The original principal was just over $100,000 however the forbearance and recapitalized interest increased the principal to just over $124,000. Still, I saved over $70,000 by paying the loan off ahead of schedule.

Combined with the $20,000 in consumer debt and $7900 in car loan, I have paid a grand total of $190,501 in six years. $31,750 per year, on average.

And since paying off credit debt was annoying and paying interest on purchases even more annoying, I have carried a 0 balance on credit cards since 2009.


Today I was putting the numbers in excel to determine if this is the week I finish paying off my student loans. What started as $110,000 and grew to a payment total of $160,000 is now down to $2275. I have an itchy trigger finger that really wants to go to Nelnet and finish it. However I need to be cautious, there are some other big bills coming up that must be paid and I have to see if my classes are a definite go before I can celebrate the loans.