How I Paid Off $26,000 of Student Loans in 3 Years (2024)

I’m excited to share another debt payoff story with you all today.

Today’s guest paid off $26,000 of student loan debt in 3 years. Awesome!

That’s just about average for student loan debt so I think a lot of people can relate to this story.

To see the student loan average by state, check out this article from USA Today.

If you have a student loan debt payoff story or you are an entrepreneur, we’d love to feature you on Feature Friday.

Learn more here: Get Featured on Millennial Boss

1. What was the total amount of debt, type of debt, and how fast did you pay it off?

I graduated with my Masters in Accounting and paid off $26,000 in student loan debt in 3 years. I was on a 10 standard repayment plan.

2. How did you acquire the debt in the first place? Do you regret doing so?

I acquired the debt when I decided to pursue a Masters in Accounting. The program took me about two and half years because I had a Bachelors in Communication so I to take some prerequisites before getting into the actual program. I don’t regret taking the student loans because I was strategic. When you get to grad school, your “free money” (Pell and SEOG grants) options are limited. You could apply for scholarships but those options are limited as well. I also don’t regret the loan because I got a return on my investment right away. My income increased by 55% same year I graduated.

4. How did you end up paying off the debt? Please be as specific as possible. Describe the choices you had to make during this time. Did you have a good quality of life?

There is truly no debt pay off story without any sacrifice. I had to make a conscious effort to not increase my lifestyle choices.

I kept my rent low ($850) and was able to work a deal where my landlady gives me cable and internet.

I also didn’t buy a new car. I drove my Camry 1999 (paid cash) for nine years (2008- 2017). I also didn’t purchase full coverage which saved me a lot of money.

I only just got a new car funny enough 2 weeks after paying off my student loans because someone hit my Camry while it was parked outside.

The insurance company deemed it a total loss and I had to get another car. Guess what? I still didn’t get a new car. I settled for a used Corolla and paid $5,800 in cash.

I also had some help from an unlikely source.- my employer. My employer gave me tuition reimbursem*nts after one year of working there and this reduced the loans in the first place.

The word “good” is relative. Did I miss out on some things while paying off the loan, yes. But it wasn’t so bad. You can catch up what ever you missed out on while paying off debt when you’re done paying off your debt.

5. Did you have a plan for paying off your debt that didn’t work. Why did it fail?

No, I didn’t. My plan worked as intended. My monthly payment was $294 which I paid 35 times and my 36th payment was a lump sum of the balance.

6. Can you describe a time where your friends, family or significant other challenged your plan to pay off your debt? How did you deal with it?

Actually, my friends challenged my plans unknowingly They sometimes teased me about driving a Camry 1999 because they felt I could do better in a brand new whip. Living in New York is expensive. A brand new car would have increased my expenses and moved me further away from my goal of getting rid of my student loan debt.

7. Describe the moment that you made your last payment on your debt. When was it? What did it feel like?

I made my last payment at approximately 9:00am on April 28th (my birthday) and it felt like a huge weight had been lifted off my shoulders. It was the best birthday gift I could give myself. Of course this moment was relieved the following month when I didn’t have to send in a payment.

8. What’s next for you now that you are debt free?

Now, that I’m debt free, I’m staying away from more debt and making more money!

9. What resources (books, blogs, videos, podcasts) inspired you as you were paying off your debt?

The Richest Man in Babylon is a great book I highly recommend for everyone. Reading other people’s debt pay off stories from various sources kept me motivated. It was kind of like; if they could do it, so could I.

10. Please tell us a little about yourself in a few sentences.

My name is Ogechi, founder OneSavvyDollar a website that allows you find companies that will help you pay for school (www.onesavvydollar.com) I’m a passionate speaker and blogger of personal finance and career success. I’m always seeking ways to make people’s personal financial life dramatically simpler, more convenient, less intimidating, more fun and fashionable. I can be emailed at [emailprotected]

If you have student loan debt, you may want to check out SoFi, which is a student loan refinancing company. If you can get a better interest rate, you may be able to save thousands over the life of the loan. My (Millennial Boss)’s interest rate was 6.8% and I wish I hadrefinanced that down when I had the chance.

Fill out the SoFi survey here to see if you qualify. We’ve already helped hundreds of readers refinance their student loans.

Want to be featured on the next Feature Friday?

If you have a student loan debt payoff story or you are an entrepreneur, we’d love to feature you on Feature Friday.

Learn more here: Get Featured on Millennial Boss

Did you have student loan debt? How did you pay it off?