We pay $9 a day in Student Loan interest.
$9 a day.
That’s $63 a week.
That’s $279 a month (with 31 days).
That’s $3285 a year.
That’s a huge part of why it’s so hard to get out from under our Student Loan debt. And we aren’t the only ones, either!
Our minimum payments equal $505.84 each month. More than half of our payment is just going towards interest!
What are we doing to get out from under this?
1. We have already reduced our loan payment some by transferring it to a 0% interest credit card (the Citibank card I refer to so often) and we pay that down in a huge chunk each month: $450/month, and we’ll be done on June 1st!
2. We have centered our 2015 financial goals around throwing all of our extra money into paying down our student loans.
For now, the plan is to hoard the money in a savings account, then when we have at least $1500, write Navient a check (the company that makes me swear). That should happen just about every other month, and, as my PF blogger friends have pointed out to me (thanks, guys/ladies!), if I time it right and get Navient to process the payment properly, most of the extra payment will go towards principal and not towards loans. We’ll see if I can figure out how to work that….
According to my most recent updates in our Debt Optimizer worksheet (I love me some pre-made Excel spreadsheets), that should put us debt-free in April 2018.
No, that’s not good enough, but it’s at least a realistic goal. We paid down our student loans by more than $10,000 in 2014. With an even more aggressive system in place in 2015, I’m excited to see if we can surpass our goal and get things really moving. (This is the biggest reason I’m looking forward to tax season!)
Onwards and upwards!
* Edit: I was inspired by Brooke of PFTwins to compare what our student loan interest was this time last year – it was $12 a day. Progress! (Thanks for the inspiration, Brooke!)