Student loans…One year later

I started paying off my student loans one year ago in November 2012.  Technically, this is the second round of repayment for me, due to my second degree, but it still marks the first year of my first aggressive attempt to pay it down.  I started with about $27,000 in student loans at 5.5% interest, calculated daily.  When I started repayment, my daily interest charge was well over $4.  That’s a latte a day!

student loan website

I hate this website…

November 2012

Loan Amount: $27,574.78

Daily Interest Charge: $4.84

When I started repayment, my payments were regularly scheduled payments that came out of my budget.  I started at the minimum monthly payment and increased it to $500 a month as my salary increased.  I also made additional payments from income generated from the blog, mystery shopping, and monetary windfalls such as tax returns.

After one year, I’ve managed to pay $11,093 towards my student loans.  Out of that amount, $1,170.57 went towards interest and $9,542.93 went towards the principal amount.  I’m down to just over $17,000 and my daily interest charge is almost cut in half!

October 2013

Loan Amount: $17,652.35

Daily Interest Charge: $2.66

I’m hoping to pay off the remainder of my loan in the next 12-16 months.  A few things should help facilitate that:

  • I’ve increased my monthly payment from $500 a month to $750 a month
  • I should have another raise at work by April or May of next year, allowing me to contribute more money
  • I should be able to continue contributing money from my side jobs

I’m super excited for the day I can log into the awful, awful NSLSC website and be able to see a loan balance of ZERO.

Anyone else battling a student loan?

Posted in: Credit and Debt

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13 Comments

  1. Way to go! I bet you can knock it out even faster than one year-16 months. You’ve made so much progress and you’re so close. I remember when I was in the home stretch how addictive it was to throw money at the debt. The day I got ACS out of my life I was so happy I could have shouted from the rooftops.

  2. Liquid says:

    Nice progress :) With your increased rate of payback the remaining balance will only drop faster and faster. I didn’t know student loan interest is calculated on a daily basis which kind of sucks. At least you’re paying it down pretty quickly :) I only had $16K of student loan debt coming out of school my burden wasn’t as large. Still took me about 2 years to pay it off though. But I’ve accumulated much more debt since then.

    • CF says:

      Thanks! I’m really looking forward to watching those numbers plummet. It’s my own fault for taking out so much in loans originally but hey… almost there!

  3. You will have that zero before you know it. I didn’t have any student loans but my wife did and she paid them off over the course of a few years. Best of luck mate.

  4. Steve says:

    Hey CF,

    Loving your guys’s blog!

    I’m also in aggressive repayment and have a projected end date of December 2014. Wanna race?? ;)

  5. That’s awesome progress! Way to go!!!

  6. Yay for progress! Government websites are not known for being terribly useful unfortunately :-(
    It’s also awesome that so much of your payments has gone to principle, that’s really dented the interest costs.

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