Student Loan Debt: Update #2

Happy Friday everyone! I hope your week went well :). Mine went by fast, but that’s a good thing as I have a nice vacation to look forward to at the end of August/beginning of September! Yes, my bosses approved a week of vacation; I was trying to press the “send” button for at least ten minutes on my request e-mail. I am glad I did though, as I haven’t had an “event” to look forward to in a while.

Student Loan Update 2

Student Loan Progress

Unfortunately, progress is going slowly. Since I booked a trip to see my parents, I might not be able to make as much of an extra payment as I would like. There are a lot of bills headed my way all at once next week, so I will evaluate after that barrage. August is looking better as I get three paychecks that month. There is hope!

Loan One
Subsidized: $3,102.81 @ 5.35% (-$69.74)
Unsubsidized: $1,678.96 @ 6.55% (-$93.43)
Total: $4,781.77 (-$163.17)

Loan Two
Subsidized: $4,920.84 @ 4.25% (-$84.25)
Unsubsidized: $6,106.24 @ 6.55% (-$133.16)
Total: $11,027.08 (-$217.41)

GRAND TOTAL: $15,808.85 (-$380.58)

What Happened In June

I made two payments last month that totaled $450. I really hate interest. I am paying extra on both loans, but I think I am going to start paying the minimum on the second loan and toss all the extra at the first so I can get rid of it. My plan is to get rid of the one with the highest interest rate, which also happens to be the smaller one. This makes it easier for me, since the bigger amount is somewhat intimidating. I am excited that it’s going to be below $11k with the next payment though! Small little victories. As it is, I am under $15k total now. However, there is no way I can continue with my current payments as it will take longer than I am comfortable with to pay off. Luckily, my annual review is up in August, so I am hoping to negotiate a raise which will help with that.

Plans To Get R In On the Fun

I have been slightly bugging R lately to get in on the student loan payoff game. For the most part, he has been paying the minimum because that is what he can afford, but lately he’s been stepping it up. His loans are pretty confusing, though. He owes one provider $250 a month, but he has six individual loans with them! He got his statement in the mail today and it was the first time I had ever seen it before, so I decided to read through it. He has three loans where the original amount was $2,000, and they are all at a 6.8% interest rate! He is getting nowhere on paying them sadly, as two of the balances are now over the original amount of $2k. I logged in online to see if his provider would let him specify which loans to pay more toward. He was in luck! (I am very jealous of providers that have this option. I wish my loans were split up like that, because then I would be able to pay off my one loan that’s $1.6k at 6.55% easily.) We devised a plan of paying extra toward those three loans, and hopefully they will get paid off more quickly than before. I shall be monitoring his progress now as well, though he owes quite a bit more than I do. I hope I can make him a somewhat excited to pay more towards them! If anything, I’d like to be an inspiration for him, but we will see.

How have you been doing with any debt payments you may have? Have you ever been able to inspire people around you to join you on your journey to being debt free? Tell me!

Photo Credit: Mint.



  1. DC @ Young Adult Money July 12, 2013 at 8:05 AM

    I just pay the minimum for now because I want a larger emergency fund. I do anticipate paying more once side income ramps up, but for now I’m sticking with the lower payments. I applaud you for proactively paying down more tho!

    1. E.M. July 12, 2013 at 1:51 PM

      That’s exactly what I did when I started paying last year. I didn’t really know any better, and I wanted to save up vs pay more toward the loans. Now I’m at a point where I am comfortable with what I have in the bank, so I feel okay diverting a bit more toward them. Good luck with the emergency fund!

    1. E.M. July 12, 2013 at 1:49 PM

      Indeed it does. I am going to visit my parents, who just moved down south :). So not really anything crazy, but it will be nice to just relax and be away from everyday things.

  2. Matt Becker July 12, 2013 at 1:08 PM

    Sounds like you guys have a good strategy. Even if the progress is slow, it’s still progress. And being able to focus on R’s higher interest loans is definitely a good thing.

    1. E.M. July 12, 2013 at 1:48 PM

      Yes it is! He’d rather not think about his loans, but ignorance is not the way. While it’s depressing to think that a huge chunk of his earnings is going toward it, hopefully he will feel better in a few months when he sees the amounts going down!

  3. Girl Meets Debt July 12, 2013 at 6:11 PM

    Great work with your student loan repayment E.M.! My sister doesn’t know about my GMD blog but we do talk about debt since she has a huge student loan too and she said because of me becoming so serious about paying it of ASAP, it’s inspired her to pay hers off ASAP as well :D

    1. E.M. July 12, 2013 at 11:24 PM

      Thanks! That’s so awesome that you’ve inspired your sister to follow in your ways. It’s nice to be able to reach out to everyone via blogging, but it’s especially nice when you can reach out to family/friends and help them out, too.

  4. cj July 12, 2013 at 8:07 PM

    EM, congrats on getting on your loans so early in the game. Wish I had. I paid my student loan off March 2013. I had to slap down $9000 to polish it off, but good riddance to it! It was around since 1993! Cripes!

    1. E.M. July 12, 2013 at 11:27 PM

      Thank you! I do wish I had started paying more last year, but better late than never. $9,000 is quite the chunk of change! I’m not sure if I would have been able to pull the trigger if I had been in your situation, so I have to give you a lot of credit for that!

  5. SarahN July 13, 2013 at 1:54 AM

    Nice work – I realise how lucky we are in Australia with the structure of student debts. Your debt is to the government and your repayments a % of your income (set by law). You can pay more sooner, and you get a discount. You can pay upfront and also get a discount. The overall costs aren’t anywhere near as high as in the US (yet, at least). Keep at it, and slowly it’ll be gone!

    1. E.M. July 13, 2013 at 11:35 AM

      That’s neat! So they’re kind of providing guidance for you. That’s an interesting concept. I can’t imagine how high the costs will be in another 10 years – as it was, my tuition was going up around $1k each year I attended.

  6. KK @ Student Debt Survivor July 13, 2013 at 8:09 AM

    gotta celebrate those small victories because they’re what add up to the big ones. It’s hard to get someone else on board with you if they don’t want to do it for themselves. But once you set the good example you’ll be surprised at how many people start to ask you “well how’d you do it?” They have to have the curiosity first, and then it’s much easier to have that conversation.

    1. E.M. July 13, 2013 at 11:36 AM

      Yes, curiosity definitely helps! I think it is easier to lead by example. None of my friends really discuss their expenses/loans though, so I don’t think it’s going to come up in an actual situation for me. I am at least trying to inspire my family to pay off debt with some success!

  7. Pretired Nick July 13, 2013 at 1:06 PM

    I’m just excited I’ll have less debt after I sell my fourplex! Been a long time coming!

    1. E.M. July 13, 2013 at 2:21 PM

      Good luck selling it!

  8. Untemplater July 15, 2013 at 1:03 AM

    Keep up the good work! Every dollar counts and gets you closer to your goals.

    1. E.M. July 15, 2013 at 9:46 PM

      Thanks! Every dollar definitely does count when it comes down to it.

  9. Tara @ Streets Ahead Living July 30, 2013 at 9:34 AM

    My federal loans are like that with the multiple loans in one. Each year at undergrad and each loan taken out in grad school is in one loan so I can see all the different interest rates with them. What I do is pay the minimum each month and then pay an additional payment to the highest interest one, which you can do only if you pay online. That way, I’m not paying more on my loans that are locked in at sub 4% interest rates because I want to get the higher interest loans paid down first.

    1. E.M. August 4, 2013 at 9:58 AM

      That’s great! I really wish I had that option. It’s definitely the smart way to go.


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