From Debt to Dreams Paid Off $80k in 3 years

Happy Friday friends! Today I’m excited for another installment of Student Loan Conquerors. Student Loan Conquerors is an interview series where I talk with some awesome people tackling their student loan debt head on and finding out how they are doing it and what inspired them to start in the first place. If you are interested in participating please contact me and share a little information about your student loan debt story.

Today, I’m excited to share Debt Hater from, From Debt to Dreams, student loan story. Debt Hater is a 20-something-year-old male living in the Northeast US just trying to figure things out. Debt Hater blogs about personal finance with a focus on student loans, with the ultimate goal of reaching financial independence and being able to retire early compared to a traditional retirement.

1. When did you graduate and with what degree?

I graduated back in 2012 with a bachelor’s degree in Information Systems.

2. What is your student loan debt story? What was the maximum amount of student loan debt you owed and where do you stand now?

After graduating from college I owed $83,000 in student loans, or about $20,000 for every year of college. I can gladly say that as of April 2016 I have completely paid back all of my student loans!

(editor’s note: Woah! Congrats, that means Debt Hater paid back his loans in less time than it took to accumulate them!)

3.When did you start to focus on your student loans and what motivated you to do so?

The grace period for my loans ended in December 2012, just in time to make my first payments before Christmas. I basically made the minimum payments and avoided looking at my total debt until the Spring of 2013. Realized that I would be paying off these loans for the next 10 years, unable to really afford living on my own even with just making the huge minimum payment which was around $850 a month at the time. I decided to take a deep breath and analyze the situation, making the decision to put all of my extra income towards paying off my loans. This also sparked a general interest in personal finance and how to be smarter with my money.

4. What is the best piece of financial advice you’ve received?

The best piece of advice I received was probably to treat my credit card more like a debit card. Making sure to only spend what I am able to pay off and make sure that I pay the balance off full in every month. I think this advice helped to prevent me from piling up credit card debt in addition to my student loan debt.

5. What is one piece of advice you would give to others paying down student loans?

Make your student loan repayment a priority, but don’t burn yourself out. It’s OK to spend some money on a vacation or having some fun as long as the debt repayment remains a priority. It’s better to make a slightly smaller payment one month while staying on track instead of becoming completely demotivated. Find ‘extra’ money in your budget by saving in areas that aren’t as important to you so that you can spend money on the things that are!

6. If you could do it all over again, would you? Why or why not?

I would probably go to community college (I was eligible to go for free) and then transfer to the same school which had a program set up to do just that. I think that $83,000 in debt was way too much, but half of that would be manageable in my current situation. I’d still end up with the same final result too.

7. Are you actually utilizing your degree? If not, why not?

I’m currently employed as Business Systems Analyst, so I am utilizing my degree. I am extremely grateful for that as I know many others are still struggling to find relevant work after graduation.

8. Anything you’d like to share with LDMW readers?

Use a calculator to find a repayment plan that works for you and adjust the payments to see how they affect your payback timeline. I’ve also created a spreadsheet that allows future (or current) college students to take a look at salary ranges and compare that estimated monthly income to a monthly student loan payment, along with major expenses (rent, food, utilities, etc). I think looking at your student loans from a budget perspective makes a lot more sense. I know I personally didn’t really understand the concept of just how much $50,000+ was, as before college the largest purchase I had made was a used car.

The End.

Thank you, Debt Hater! I appreciate you being a part of Student Loan Conqueror Series. I’m excited for you and your student loan debt freedom!