In February 2016, college professor Amanda Page paid off the last of her student loan debt. Once she buckled down, paying off student loans took her 14 months. She paid off $47,554, but she says, “I like to say that it took me ten years to pay off my student loan debt in one year.”
Though Page is free of student loan debt now and gainfully employed as a college professor, her journey to debt freedom was filled with many setbacks.
Years before facing her student loan debt, Page found herself overwhelmed with credit card and medical debt. She had nearly $40,000 in combined credit card and medical debt and was in over her head.
She accumulated the debt over 16 years and tried in earnest to pay it back for several years, but her limited income as an adjunct professor made it difficult. Additionally, her credit card company significantly increased her interest rate.
These series of events led her to declare bankruptcy, something she notes as a very humbling experience. After declaring bankruptcy, she worked on building a small savings account and continued paying only the minimum on her student loan payments, after deferring during particularly tough times.
“Even though I paid the minimum, it was set up as graduated payments. I paid something like $125 a month. It eventually became $175 a month,” says Page. “But, in seven or so years of paying the graduated payments, I made a whopping $1,000 dent in the balance.”
Page was nearing her 40th birthday and still carried a large student loan balance. After remarking to her mom, “I will probably die with student loan debt,” she realized something had to change.
This was not the life she wanted to live. She didn’t want to be trapped by her debt, and her dreams went far beyond her student loans. She wanted to travel, save for retirement, and live a life without debt, once and for all.
Changing her mindset
Page made the mental decision that she was going to pursue debt freedom, but shifting her mindset was hard at first. “It took a lot of years for me to believe I could do it … I let it loom and cast a dark shadow over my life for a lot of years,” she says.
After declaring bankruptcy and seeing such little progress on her student loans, believing she could actually get out of debt seemed tough.
During this time she read a lot of personal finance books and blogs to get her started on her debt repayment journey and motivate herself to pay off student loans. She even started her own blog, Dream Beyond Debt, to stay accountable in the debt payoff process.
How to pay off student loans by making changes
Once she made the decision to become debt free, Page knew she couldn’t keep doing things the way she always had — she had to make some changes in her life to reach her goal.
She cut down on her expenses and took on a roommate to lower her living costs. She stopped buying books and clothes and went to discount grocery stores.
Additionally, she used the debt avalanche method to pay student loans, which focuses on paying off high-interest debt first. She also took on extra work through side jobs to help expedite her repayment.
Dealing with challenges
One thing is for sure about paying off student loans: It’s not easy. If you’ve ever wondered how to pay off student loans, you may be intimidated by the road ahead.
It’s littered with challenges, setbacks, and frustration. Many times, paying off student loans means changing every aspect of your life.
“I had to change a lot of things in my life: dining out with friends, coffees on the run, impulse book buys. I also had to work on my confidence and mindset the entire time,” says Page.
Another challenge Page faced was with her side hustle ideas. She took on a lot of work and was spread thin managing her job and side hustle gigs. But with all of her work, she would impatiently wait for the 15th to arrive so she could make her “monster payments.”
“Every milestone felt like a victory, but it also tempted me to pause and spend money on something else. I wanted to follow-through so badly, though. In the end, I did,” she says.
Life after student loan debt
Page’s journey to debt freedom took many years, but after focusing intensely for over a year to pay student loans she was able to eliminate the last of her debt.
For her, student loans were a necessary cost for her job. “I couldn’t be a professor without that degree, so I am glad I did it, debt and all,” she says.
Though Page is free of credit card and student loan debt, she recently got into more debt — but for something she is quite thrilled about. She bought a house and is focusing on building up her investments.
If you want to know how to pay off student loans, it’s important to understand that the journey may not be easy, or in a straight line. There will be twists and turns, setbacks and successes. But you can do it if you just commit.
Page’s advice for others in debt? “Pay it off ASAP. Don’t let it drag out for 25 years. Make it a priority and pay it off in as small a time frame as you can. You will not regret it.”
Interested in refinancing student loans?Here are the top 6 lenders of 2019!
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1 Important Disclosures for SoFi.
2 Important Disclosures for Earnest.
To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.
Earnest fixed rate loan rates range from 3.50% APR (with Auto Pay) to 7.89% APR (with Auto Pay). Variable rate loan rates range from 2.49% APR (with Auto Pay) to 7.27% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of April 17, 2019, and are subject to change based on market conditions and borrower eligibility.
Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.
The information provided on this page is updated as of 04/17/2019. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at email@example.com, or call 888-601-2801 for more information on our student loan refinance product.
© 2018 Earnest LLC. All rights reserved. Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America.
3 Important Disclosures for Laurel Road.
Laurel Road Disclosures
However, if the borrower chooses to make monthly payments automatically by electronic funds transfer (EFT) from a bank account, the fixed rate will decrease by 0.25%, and will increase back up to the regular fixed interest rate described in the preceding paragraph if the borrower stops making (or we stop accepting) monthly payments automatically by EFT from the designated borrower’s bank account.
However, if the borrower chooses to make monthly payments automatically by electronic funds transfer (EFT) from a bank account, the variable rate will decrease by 0.25%, and will increase back up to the regular variable interest rate described in the preceding paragraph if the borrower stops making (or we stop accepting) monthly payments automatically by EFT from the designated borrower’s bank account.
All credit products are subject to credit approval.
Laurel Road began originating student loans in 2013 and has since helped thousands of professionals with undergraduate and postgraduate degrees consolidate and refinance more than $4 billion in federal and private school loans. Laurel Road also offers a suite of online graduate school loan products and personal loans that help simplify lending through customized technology and personalized service. In April 2019, Laurel Road was acquired by KeyBank, one of the nation’s largest bank-based financial services companies. Laurel Road is a brand of KeyBank National Association offering online lending products in all 50 U.S. states, Washington, D.C., and Puerto Rico. All loans are provided by KeyBank National Association, a nationally chartered bank. Member FDIC. For more information, visit www.laurelroad.com.
4 Important Disclosures for LendKey.
Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.
5 Important Disclosures for CommonBond.
Offered terms are subject to change. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900). If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown. All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 2.48% effective April 10, 2019.
6 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
|2.49% – 7.27%1||Undergrad & Graduate|
|2.49% – 6.65%3||Undergrad & Graduate|
|2.49% – 7.41%4||Undergrad & Graduate|
|2.50% – 6.65%2||Undergrad & Graduate|
|2.49% – 7.11%5||Undergrad & Graduate|
|2.98% – 9.72%6||Undergrad & Graduate|