Spinoff: who paid their student loans off in one year?

posted 3 years ago in The Lounge
Post # 3
Member
11734 posts
Sugar Beekeeper
  • Wedding: November 1999

I would ensure that you have a 6-12 month emergency fund set up before doing this.  THEN you can throw all that extra money towards your loans.  If you can do it and actually get them paid off in a year, that’s great!

Post # 5
Member
356 posts
Helper bee

@FutureMrsT1221:  I didn’t have anywhere near that much for a student loan. I went to beauty school and had a scholarship for well over half of what it cost to go, so in the end I paid under $10k myself. My first job as a stylist, I made $8/hr or 40% commission (I was told in school the pay scale was MUCH higher) and I paid off my student loan in a year. I was putting roughly $500/mo towards them. Needless to say, I paid off my student loans while being in the industry I went to school for, but am no longer practicing that full time!

Post # 6
Member
511 posts
Busy bee
  • Wedding: August 2014

I have to disagree about the emergency fund… it’s good to have SOME money set aside, you don’t want to be living hand to mouth, but remember you’ll be paying interest on those loans! If you can pay it off super fast that’s usually the best move. A 6-12 month emergency fund is HUGE when you still have debts.

As for me, I graduated in 2008 with about $40k and am still paying things down 🙁 I think I’ll have it payed off within a year or so, but I never dreamed it would take me this long! I had a big set back in the middle where I was unemployed for a while and had to take back some of the money I had paid off. So I guess technically some of it is not student loans, but it’s on the student credit line I had.

Post # 7
Member
205 posts
Helper bee
  • Wedding: June 2012

I had $28,000 in student loans and paid them off in 11 months. 

Post # 8
Member
11734 posts
Sugar Beekeeper
  • Wedding: November 1999

@thunderberry:  That’s exactly my point for having an emergency fund.  So you can actually pay your bills when unemployed, rather than taking out more loans.  If her entire salary is going towards loans, putting a good chunk of it towards an emergency fund won’t actually take as long as you’d think.  It just takes longer to build up when you have other bills and obligations!

Post # 9
Member
764 posts
Busy bee
  • Wedding: January 2014

@FutureMrsT1221:  I have about $70,000 in loans and will have them paid off in a year and a few months. I am still in school but no longer taking anymore loans I just pay for the semesters as they come. I should have them paid off before I graduate. Any extra money (besides our rainy day fund) we put towards the loans. Also any bonus’ my husband makes will go toward the loans. He fortunately makes hefty bonus’ that really help. We also have some mutual funds that if needed can finish paying off the loans later (incase he were to lose his job). 

Post # 10
Member
764 posts
Busy bee
  • Wedding: January 2014

@abbie017:  I agree having a rainy day fund is essential. She should pay towards her loans and build an emergency fund. 

Post # 12
Member
764 posts
Busy bee
  • Wedding: January 2014

@FutureMrsT1221:  No I am not working, only my husband. My degree is Education (EC-6th grade). I changed my major and moved to a new location (husbands job), so I lost hours causing me to be in school so long. lol. I’ll be done someday. Hehe. 

Post # 13
Member
254 posts
Helper bee
  • Wedding: September 2014

I had $25k in school loans and it was paid off in 12 months exactly. I was working full time, and was living at home still.

Post # 14
Member
511 posts
Busy bee
  • Wedding: August 2014

@abbie017: Depending on the amount of interest though, you may actually be better off to have to add to your loans later if you’ve saved a bunch of interest in the mean time! The math is complicated and will depend on the circumstances… for instance if you only have access to really expensive credit like credit cards it can be a problem to have no buffer at all (although I’d still say 6-12 months is excessive). It can be calculated out though. For most people, saving up 6-12 months of income will take years, and in the mean time you’ve spent a LOT of money on interest on the off chance you lose your job. 

Post # 15
Member
234 posts
Helper bee
  • Wedding: October 2015

@FutureMrsT1221:  Are you sure you will be able to do that? I only say that  because even the best starting salaried jobs are still fairly low. My starting salary in June (from a BS in EE) will be about 60k. My take home? Probably close to 30k (or 2.5k per month). Even though I’ll be living at home, rent free, it still would be impossible to pay off that much money. Just food for thought…

Post # 16
Member
3978 posts
Honey bee
  • Wedding: September 2014

@katy13:  We have 70k and there’s no way we could pay them off in a year. It’s more than the both of us make together. Lucky you. It will probably take us the 10 years.

Leave a comment


Sent weekly. You may unsubscribe at any time.

Find Amazing Vendors