In order to hold myself accountable to my aggressive student loan repayment project I made this fancy amortization table… but that doesn’t necessarily make the reality of paying 31k in one year any easier.
I could stick my standard loan payments, 453$ per month, and it would free up a significant portion of my my monthly take home pay. But when I set out earlier this year to pay off my loan in 12-13 months I did so because I wanted this stress off my back as soon as possible.
The weight of the loan payment is serious. The weight is not measurable by any metric I know of. Its capable of keeping me up at night. Knowing that I owed the federal government over 30 thousand dollars was not easy to stomache. That’s why I decided to pay it off as. aggressively. as. possible.
Writing this post is a helpful reminder for me about why I set out to pay this debt off asap, but acknowledging that I’m voluntary sending 2500$ into the black hole every month is difficult. That money could be accruing my high-yield savings account, earning 2.1% interest as I save for a down payment on a house. It could be invested in treasury bills or CDs, I could be using it to fund a taxable brokerage account and investing in index funds.
It could be used to help my parents and their financial situation.
Not having the flexibility of that extra 2500$ per month is crushing. But by the end of 2019, I look forward to getting back to 0$ owed and will put those extra hard-earned dollars to work building financial security for myself and my family.
The cost of higher education in the U.S. has ballooned out of control, the federal government and the loan industry has incentivized and endorsed it. It’s predatory and unnecessary and we have to change it. I’m not against a Jubilee as I think that extra spending money for debtors in repayment would actually act as a powerful consumer expenditure stimulus (two-thirds of our economy is consumer expenditure) and would benefit the economy. I’d also like to see a certain level of higher education afforded to working families (taxpayers) as a right. Trade schools and two-year community colleges teach an incredible range of skills useful to our economy, why exploit those who seek to better themselves and saddle them with years of debilitating and depressing debt obligations?
Disagree, agree? Feel free to let me know in the comments.