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How I’m Getting Rid of My Student loans FAST

Last Updated: BY Michelle Schroeder-Gardner - 133 Comments

Disclosure: This post may contain affiliate links, meaning I get a commission if you decide to make a purchase through my links, at no cost to you. Please read my disclosure for more info.

Back in November of 2012, I wrote about my $40,000 worth of student loan debt. This was the total amount of student loans that I accumulated while I was getting my undergraduate and graduate degrees. When I wrote that post, I had hardly paid anything towards my student loans. Interest was slowing building up, but not that much, as most of my loans were still being deferred.

Ever since that post was published, I have been attacking my student loans like crazy. I have been applying any extra money towards my student loans, and I am now proud to say that they are almost gone. We have enough money in the bank to completely pay them off, but have chosen to wait as we don’t want to withdraw everything out of our emergency fund to pay my student loans off. We don’t want to tap into retirement funds as well, so those funds will stay where they currently are.

As a refresher, I graduated in May of 2010 with my B.A. in Management and my B.S. in Business Administration. I applied for jobs and was hired on at a financial firm right after I graduated. I then took a year off from school and decided to go back for my Finance MBA. I then graduated in August of 2012 with my Finance MBA. I continued working full-time throughout this and still hold my same job today. I graduated with a decent amount of debt, but I am happy that I don’t have more.

I am guilty of taking out more in student loans than I needed. Right after high school, I needed a place to live and I probably took out an extra $1,000 or $2,000 to help fund my living. So, not too horrible, but that’s still an extra couple of thousand that I probably should not have taken out.

June is my student loan payoff month.

I am so close to being done with student loans forever. I am very grateful for everything that has happened in my life, and I do realize that when it comes to student loans, that I have been lucky with the fact that they will be gone so quickly. I have worked very hard though!

I started by working on my extra income. As you all know, my extra income has been through the roof lately. I’m glad that I am able to share my journey with my extra income with you all. I hope that I have been helpful with all of my posts. I never thought that my extra income would be anywhere near where it is today, and thankfully to it I am able to pay off my student loans much more quickly.

I also have been attacking my student loans according to interest rate.  The loans with the highest interest rates are the ones that I have been eliminating first. It has been nice watching each student loan disappear!

What are you doing to eliminate your loans? How much do you pay each month towards them?

Did you take out more than you needed?

 

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About Michelle Schroeder-Gardner

Michelle is the founder of Making Sense of Cents, a blog about personal finance and traveling. She discusses how her business has evolved in her side income series. She paid off $40,000 in student loans by the age of 24 mainly due to her freelancing side hustles. Click here to learn more about starting a blog!

Comments

  1. K. Westbrook says

    I have been working a few jobs just to get by. My loans are triple your amount. I took more out to pay for rent and all living expenses so I could focus on school and not worry about money.
    My recent post Hello world!

    Reply

  2. Dylan says

    I love the infographics on their website! I'm such a visual person so it really helps to see graphics. The one about coffee hits home…. 🙂 Thanks for sharing!

    Reply

  4. DC@Young Adult Money says

    That's so awesome you are eliminating your student debt! My wife and I were talking just a couple days ago how awesome it would be to NOT have student loans…though we aren't attacking them like you are. Perhaps now that I have some more side income I can start putting more towards it. We'll see.

    Also – awesome giveaway! I'll be sure to get signed up and leave a comment that I did.
    My recent post Most Content on the Web about Student Loans is Pointless

    Reply

  7. Mami2jcn says

    I signed up for SALTMoney.

    What I learned from their article "The Limits of Rewards Cards" is that even if your credit card APR is listed as “fixed”, the company still has the power to change it— all fixed means is that they’re required to give you a heads up before doing so. I think a lot of people don't know that.

    Thanks for the giveaway!

    mami2jcn at gmail dot com

    Reply

  9. graduateliving says

    I took out $30,000+ for a graduate degree (no undergraduate debt), and I'm now continuing on for a PhD in my field (as a funded student). Between splitting costs with my partner, living frugally in a fairly expensive city, and having a side-hustle, I'm able to throw $300+ a month at my interest-bearing loans (one of which is already paid-off), even though I technically don't HAVE to pay on them (since I'm still in school). I'm hoping to have all my interest-bearing loans gone by the time I graduate!
    My recent post Hey, No Big Deal, But…

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  11. John S @ Frugal Rules says

    That's awesome you're so close to having the student loans paid off Michelle! I paid mine off last January and was such an awesome feeling not to see that monthly amount go out anymore.

    Reply

  12. Janice @ Whiz Silver says

    Great to hear that you're clearing your debt in no time. I can totally understand how liberating it feels. I'm just a month earlier than you in clearing close to $25,000 in student loan by paying $500 per month. Enjoying my debt free period now!

    Reply

  13. Ree Klein says

    First and foremost, CONGRATULATIONS, for being so focused on torching your student loan debt. You are a great role model! I can't answer any of your questions because I never went to school with the goal of coming out with a degree. So, I never took out student loans (I had lots of other debt, just not student loans!).

    I'm gravely worried, however, that student loan debt is ruining lives. It's not debt that can be swept under the BK carpet. And, so many parents are hocking their future security to make it easy on their kids that I see disaster looming there, too.

    Keep up the great work!
    My recent post How Do You Define Prosperity? (And a Give Away)

    Reply

  16. @tamaralee89 says

    I think SALT is great – they are getting ready to partner with the school I work for and I just sat in on the first meeting! I'm starting grad school this summer, so I'm gearing up to pay back my loans. I'm going to start paying on them NOW, rather than waiting until I've completed it. I'll hope to pay about $200-300 a month.

    Reply

  17. countdowntoindependence says

    I took out $17,000 total loans. I'm glad that I scrimped and saved so that I only took loan money the first two years of law school, not the third. My monthly payment ended up being around $200 and I paid an extra $200 every month to speed things up. I've been student loan free for a little over a year, and it feels awesome! Now on to the mortgage…
    My recent post Marrying a Financial Equal (or Not)

    Reply

  18. Tina@MyShinyPennies says

    I graduated law school with $17,000 in loans. I'm glad I scrimped and saved, so I avoided taking out more loans during my last year of school. My monthly payment was around $200 and I threw in another $200 to make the number go down faster. I've been student loan free for a little over a year, so now I can devote all my time to tackling the mortgage!
    My recent post Marrying a Financial Equal (or Not)

    Reply

  19. Liz says

    We budget like crazy to make sure we are spending our money appropriatel. Anything left goes towards paying off ourntudent loans!

    Reply

  20. Julie W says

    Honestly, I didn't have a large student loan, just about $5,000, because I worked 3 jobs while attending school to pay for it at the time. But credit cards are another story. I'm currently doing the snowball technique, where I pay the minimum amount on all but one, and pay as much as I can toward that one until paid off, and have paid off two in three months. It feels so rewarding to pay off a credit card!

    Reply

  22. Raki A says

    I am working two jobs to pay off the loans. In retrospect, I think I took more loan than was needed but now I'm actively working to pay it off as soon as possible.

    Reply

  25. colleen says

    Currently trying to get a handle on my student loans. I took out more than I needed to pay off previous loans, so that I now only have two loans (as opposed to 5 before). I'm trying to pay off the one with a smaller balance first, then I will tackle the BIG one.

    Reply

  26. Kyle@DebtFreeDiaries says

    Right now I'm focusing on paying off some other debts with much higher interest rates (or potentially higher rates). I personally have just under $10,000 in loans taken out and my girlfriend has somewhere around $25,000. Since she took these loans out before we met, I'm not sure how much of that was necessary but I know for sure I took out more than I needed. Probably about $2,000 more.
    My recent post It’s Not About What You Want, It’s About What You See

    Reply

  27. Tahoe girl says

    Our student loan story is really a nightmare story,so I won't go into it. But we will never finish paying them while we're alive, unless a miracle occurs. I'm happy you made these choices. My advice to others is dont ignore them( which was done inadvertently because of a lawyer), part of the nightmare story. Anyway, we will start a repayment program. You can read some of my story on my blog.

    Reply

  28. @CatShaw54 says

    I am happy to report that I am loan free! I did not go to a fancy college so there was no student debt in my past. In life, the only loan I ever took out was for a modest mortgage, which I paid off not in 30 years but in 12. I always pay my credit card bills in full. Debt just makes me anxiety-ridden, so I avoid it. But I am in a situation now that is not ideal. My hubs and I were hit hard by the downturn in the economy and now find ourselves prematurely retired, with only one social security check coming in. As for the Salt site, I can see that it would be a helpful tool for money management and greater financial savvy.

    Reply

  30. Sarah says

    Four years after graduating, my husband still has just under $50K in student loans. We have been paying the minimum ($515 per month) while focusing on wiping out other debt with higher interest rates. Now that our other debt is gone, I'm hoping to put an extra $300 to $500 per month towards the student loans.

    I know we have a long way to go in wiping them out completely (at least 2-3 years)… but by paying off individual loans we can at least reduce the minimum monthly payments and cut out a lender or two.

    Reply

  32. Melanie T says

    I visited Salt and learned the difference between net and gross income. Luckily I was able to pay off my student loans within a few months of graduating with hard-earned savings!

    Reply

  34. Pretired Nick says

    It's sad how many people are getting out of school with massive school debt these days. I didn't take out any significant loans when I was in school so I had a lot of freedom when I graduated. I can't imagine getting out with that kind of debt hanging over my head.
    My recent post Save money with a tool library

    Reply

  36. Tina says

    I didn't have any student loans however I am scrimping and saving to put away some funds into 529's for my 2 kiddos.

    Reply

  37. kjstrohs says

    I have right around $30,000 in student loans. Currently, I'm able to pay the minimum payment (around $300) plus put an additional $200-300 a month towards paying them off.

    I want them gone, and have really cut back my spending in pretty much all categories so I can put as much towards paying them off as possible. Still have a long way to go. I'm also looking at ways to generate extra income to pay them off.

    Reply

  38. E.M. says

    I took out enough to cover tuition – I never had anything extra once the money was disbursed to my college. I only have about $15k in student loans, which isn't crazy compared to everyone else, but I still want them gone ASAP. Once I have settled into living in an apartment and getting a budget together, I plan on attacking them. Until then, I don't want to be throwing money at them when I can't afford to. My minimum payment is $200, but I pay $250-300 right now. I'm hoping to up that to $400 later this year, and more next year!
    SALT looks like an interesting site as well, I'll have to browse around there.
    My recent post Saving Your Money: Why It’s Important

    Reply

  39. debtroundup says

    I didn't have student loans, but I sure did have loans. The only thing I did was make extra money, stick to a very strict budget and push any money I had to my loans. It took some time, but I finally got there.
    My recent post When Passion Turns Into Work

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  40. Keren says

    I have two Bachelors Degrees and OF COURSE I took out more than I needed. I was young and naive and didn't know any better! Boy if I could kick my old self in the butt! My personal student loan debt is nearly $39K and I graduated 8 years ago! Ouch, that stung to type that out.
    My recent post The Incredible Benefits of Using Coconut Oil

    Reply

  41. Kelly R. says

    I do not have any student loans, however, I am determined to have my credit cards paid off before the end of this year! I am paying way more than the minimum payment to try to speed it along. Congrats on being so close to paying your loans off!

    Reply

  42. desilove says

    I absolutely took out more than I needed. I just didn't know. My mom had gone to a community college in the 80's but didn't graduate and my dad barely graduated from high school. They were clueless and I didn't know any better. I also made the mistake of listening to chirping grandparents saying that my chosen school/program/career path would never go anywhere. After 3 years and tens of thousands of dollars, I transferred into the program I originally wanted and basically had to start over. I at least landed jobs straight out of college, so that's something, at least?
    My recent post Weekly Spending Update, Vacation Edition

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  43. The Norwegian Girl says

    so excited for you finishing of your debt so quickly! I´m still a student, so I haven´t started my downpayment, but when I do, I want to go at it aggressively!!

    Reply

  44. darlene bohannon says

    really glad you are getting them paid off. i finally got mine paid off from 2008. it was a long hard struggle ,but well worth it.

    Reply

  45. steve weber says

    student debt seems like it's more common these days for older people, I'm happy you are taking steps to get rid of it!

    Reply

  46. debtperception says

    FREEDOM! Congratulations! I can't imagine what it would be like to pay off my student loan debt! I am trying to find a job, any job to put 100% of my income towards my loans but it's proving to be difficult and very frustrating. I need to try figuring out ways to increase my income by working from home. My minimum payment is $360, which my co-signer pays for because I'm unemployed. Anything else I make goes towards my loans (100%). I took out loans for tuition, housing and supplies (my part time job covered transportation and food) and my loans gained $17,000 in interest while I was attending (completely didn't understand the terms of the loans). When I entered repayment, that amount was capitalized and 3 years later I'm (co-signer) is still working on getting the loans down to the originally borrowed amount. It's so damn frustrating!
    My recent post Happy Memorial Day & Vacation Planning

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  48. vandango33 says

    This site is awesome! I learned that you can appeal your financial aid award letter! What?! 🙂

    Reply

  49. Probably Rachel says

    I came out of undergrad with way more in loans than any person should have, because my family couldn't afford to pay for my education, but made "too much" money for significant assistance. I worked hard for scholarships and worked all through school, now my husband and I are chipping away at our combined school school debt and directing the extra in our budget to principal payments on the highest interest loans.
    My recent post What to Wear to a Graduation

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