6 Month Student Loan Update

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It’s been about 6 months since I’ve started paying back my student loans (… for the second time…) and I wanted to do a bit of a recap.  When I posted my student loan repayment plan a few months ago, I ambitiously posted a scenario that would see me pay off my student loan in about 2.5 years.  With a $27,000 loan, that’s over $9000 a year.  Yikes!

Photo Credit: Dave Dugdale via Flickr

Photo Credit: Dave Dugdale via Flickr

So far, my approach as been to pay a monthly budgeted amount ($500) each month towards my student loans.  In addition to this base amount, I throw on my extra OT income and part of my blog income.  Brian also contributes a bit of money towards my loans.

The exact amount fluctuates, but each month, I’m always paying more than $500.

When I started repayment, my original amount owing was $27,574.78 and I was paying almost $4.50 per day in interest charges.  Today, my balance is $23,554.73 and I’m down to $3.50 per day in interest charges!  I’ve paid about $4000 in 6 months, and this doesn’t include my upcoming pay raise.

Needless to say, I’m pretty happy!  Things are chugging along right on schedule.  Starting this month, I’m going to be able to put another $20-40 on my student loans regularly, thanks to a cheaper phone bill.  And in a few more months, I should be receiving a salary increase that will also go towards my loans.

I like it when things work out as planned!

Anyone else out there still paying off student loans?  Any suggestions for fast-tracking my repayment schedule even more???

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23 Comments

  1. TB at BLueCollarWorkman says:

    Man, this all sounds pretty great. Great work!!

  2. Wow that’s great! I’m still paying off my student loans. I have about $4,100 left and hope to have it paid off by June or so. My big suggestion is to double check your government incentives. I’ve had at least $15,000 taken off my student loan through funding provided by the provincial government.

    • CF says:

      Unfortunately, my original loan amount was about $38,000 and I had about $5000 taken off thanks to the government. So I’ve used up my freebies!

  3. Mackenzie says:

    You are doing great with your student loan payoff! Keep up the good work 🙂

  4. Well done, good for you. Putting down $500 a month and any extra overtime money is a great goal. There is a post on my blog from one reader who shares all her tips for paying down her OSAP fast that you may want to read. Keep up the good work.. amazing how looking at all the interest and the overall number can motivate. I know it does for us,especially interest. Cheers

    • CF says:

      Thanks! I love watching the daily interest rate go down in particular. It’s galling to think that I could be literally having a delicious latte every day from Starbucks with all the money that I’m paying on interest.

  5. Cat says:

    Awesome – I think you’re doing an amazing job. I’m lucky and thanks to co-op, manager to graduate without debt.

    • CF says:

      Co-op and tuition benefits through work helped me with my second degree – no loans there. It’s the free-wheeling days of my first degree that I’m still paying off :p

  6. Congrats on being on track. That is an awesome feeling. Keep up the good pace and you will be student loan free soon enough!

  7. Awesome job! Keep up the good work!

  8. $9k a year is impressive! Best of luck and I hope you are able to have them gone in 2 1/2 years as planned.

  9. Pauline says:

    congrats, keep it up! To accelerate I would put any unexpected money (blog, bday, extra hours) towards it, but it can get frustrating.

  10. Very nice! Congrats on the swift progress. I hope you are able to pay it off soon.

  11. That looks very doable and you are moving right along!! Great work!

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