Like millions of students, Alexa Klorman faced a large student loan balance after graduating from a state college.
When Klorman graduated in 2010, she had a bachelor’s degree in psychology but over $30,000 in student loans. And while she was able to find a job right after school in advertising, the idea of repaying her student loans for ten years or more was overwhelming.
Rather than pay the minimum for ten years, Klorman decided to take action. She would accelerate the repayment period and launch a side gig to bring in additional income.
By turning her hobby and passion into a business, Klorman paid off student loans six years ahead of schedule.
Unlike many recent graduates, Klorman was determined to get her finances in a good place right away.
That’s why when Klorman started working after graduation in New York City, she lived at home for the first year to build her savings.
What’s more, she talked with her cousin, who acted as her financial advisor, about how to build her finances for a secure future.
“My cousin was the one who advised me to pay off student loan debt first before thinking of investments,” says Klorman. “He helped me do the calculations to show how much money I could save in interest by paying off the loans faster.”
Klorman was determined to pay off her debt quickly. However, she also knew there was only so much she could cut from her budget.
So rather than continue to cut corners, she decided to increase her income.
“I knew that if I cut out everything I enjoyed, like going out with friends or discovering new restaurants, I would become resentful and discouraged,” Klorman explains. “I knew I needed to grow my income instead.”
Launching a business
Klorman always loved photography.
Growing up, she took photos with her father, an avid photographer, and took pictures as a hobby for years. Skilled at capturing those unique special moments, friends and other contacts often asked her to take pictures at events.
Eventually, Klorman realized photography could be a real side business. She launched a website and did one free photoshoot to build her portfolio.
“It was the only free gig I ever did,” says Klorman. “I considered it an investment in myself to create my portfolio to get established.”
Primarily doing family portraits and newborn sessions, she built a strong reputation for herself. She began to get clients from social media, mom-network groups, and word-of-mouth.
She started small, with just one professional camera and one lens. As she got more clients and paying jobs, she gradually added to her equipment and invested in better materials. Then, over time, she added multiple lenses, flashes, and backdrops to her arsenal.
Her investments in herself and her equipment paid off. Her business continued to grow, allowing her to make serious income from her side gig.
Paying off student loans
As more money started coming in, Klorman set up automatic payments for her student loans to chip away at the balance.
Because of the extra income that she brought in from her side business, on top of her full-time job, she was able to make large payments quarterly to bring down the principal even more.
With the income from her business, Klorman was able to maintain her lifestyle. She could enjoy traveling and exploring NYC, without cutting her expenses to the bone.
Ultimately, launching a side business allowed Klorman to accelerate her payments without sacrificing the things she loved. And after just four years, she paid off her debt in full. Six years ahead of schedule.
“On a personal level, it was so exciting. My parents, my sister, my cousin–they were all so proud of me,” says Klorman. “For me, it’s a state of mind. Knowing I’m debt-free is an incredibly freeing feeling.”
With her student loans gone, Klorman has turned her photography business, Alexa Drew Photography, into the focal point of her career.
Klorman now works in advertising on a part-time basis, which allows her to spend more time with her clients in the studio. She’s done shoots throughout Manhattan, Chicago, Los Angeles, and San Francisco.
Klorman loves what she does, especially capturing special moments with families. She specializes in portrait and event photography, capturing candid moments and emotional exchanges.
And word-of-mouth continues to be her biggest source of clients. 90 percent of her clients are from referrals.
“I love doing portraits,” says Klorman. “The relationships I build with clients is wonderful. I approach each shoot with real enthusiasm, and it shows in the pictures.”
Additionally, Klorman continues to steadily build her savings to prepare for her financial future. The habits she developed paying off her student loans have helped her be disciplined and focused when it comes to her income.
“As I progress in life, I’m laying the foundation for a secure future,” says Klorman. “I’ve built life-long habits that will ensure I’m smart with my money.”
Interested in refinancing student loans?Here are the top 6 lenders of 2020!
|Lender||Variable APR||Eligible Degrees|
|1.99% – 5.64%1||Undergrad & Graduate|
|1.89% – 5.90%2||Undergrad & Graduate|
|2.25% – 6.09%3||Undergrad & Graduate|
|1.89% – 6.77%4||Undergrad & Graduate|
|2.39% – 6.01%||Undergrad |
|1.99% – 5.41%5||Undergrad & Graduate|
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1 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 2.98% APR (with Auto Pay) to 5.79% APR (with Auto Pay). Variable rate loan rates range from 1.99% APR (with Auto Pay) to 5.64% 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 July 31, 2020, 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 7/31/2020. 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 protected], or call 888-601-2801 for more information on our student loan refinance product.
© 2020 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.
2 Important Disclosures for Laurel Road.
Laurel Road Disclosures
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.
As used throughout these Terms & Conditions, the term “Lender” refers to KeyBank National Association and its affiliates, agents, guaranty insurers, investors, assigns, and successors in interest.
Assumptions: Repayment examples above assume a loan amount of $10,000 with repayment beginning immediately following disbursement. Repayment examples do not include the 0.25% AutoPay Discount.
Annual Percentage Rate (“APR”): This term represents the actual cost of financing to the borrower over the life of the loan expressed as a yearly rate.
Interest Rate: A simple annual rate that is applied to an unpaid balance.
Variable Rates: The current index for variable rate loans is derived from the one-month London Interbank Offered Rate (“LIBOR”) and changes in the LIBOR index may cause your monthly payment to increase. Borrowers who take out a term of 5, 7, or 10 years will have a maximum interest rate of 9%, those who take out a 15 or 20-year variable loan will have a maximum interest rate of 10%.
KEYBANK NATIONAL ASSOCIATION RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE.
This information is current as of September 9, 2020. Information and rates are subject to change without notice.
3 Important Disclosures for SoFi.
4 Important Disclosures for Splash Financial.
Splash Financial Disclosures
Terms and Conditions apply. Splash reserves the right to modify or discontinue products and benefits at any time without notice. Rates and terms are also subject to change at any time without notice. Offers are subject to credit approval. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet applicable underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates are reserved for the highest qualified borrowers. If approved, your actual rate will be within a range of rates and will depend on a variety of factors, including term of loan, a responsible financial history, income and other factors. Refinancing or consolidating private and federal student loans may not be the right decision for everyone. Federal loans carry special benefits not available for loans made through Splash Financial, for example, public service loan forgiveness and economic hardship programs, fee waivers and rebates on the principal, which may not be accessible to you after you refinance. The rates displayed may include a 0.25% autopay discount.
The information you provide to us is an inquiry to determine whether we or our lenders can make a loan offer that meets your needs. If we or any of our lending partners has an available loan offer for you, you will be invited to submit a loan application to the lender for its review. We do not guarantee that you will receive any loan offers or that your loan application will be approved. Offers are subject to credit approval and are available only to U.S. citizens or permanent residents who meet applicable underwriting requirements. Not all borrowers will receive the lowest rates, which are available to the most qualified borrowers. Participating lenders, rates and terms are subject to change at any time without notice.
To check the rates and terms you qualify for, Splash Financial conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, the lender will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
Splash Financial and our lending partners reserve the right to modify or discontinue products and benefits at any time without notice. To qualify, a borrower must be a U.S. citizen and meet our lending partner’s underwriting requirements. Lowest rates are reserved for the highest qualified borrowers. This information is current as of September 10, 2020.
5 Important Disclosures for CommonBond.
Offered terms are subject to change and state law restriction. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900), NMLS Consumer Access. 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 0.16% effective August 10, 2020.