The Aftermath

This year is my 10th anniversary since leaving graduate school. Many things happened in those years. People came in and disappeared from my life. I moved several times. Although unemployed for a year or so after leaving graduate school I eventually found work as an Engineer and worked in that capacity since then. The depression I felt in graduate school lifted, and now I feel relatively content. I recently paid off my credit cards, and I have a positive net worth. Things are working out for me, even though 10 years ago I never thought that would be possible. However, there is one constant in my life - my student loan.


If I raided my retirement accounts, I could pay my student loan in full. However, I don't want to pay the taxes and penalties associated with doing that. I would have used the money I invested into retirement to pay them, but I thought it more prudent to contribute the maximum that my employer would match. I don't want to throw away free money!


However, I am tired of my oppressive $900/mo student loan payment! My original loans totaled $65k. After my unemployment stints and a few hardship forbearances, the amount rose to $75k! I consolidated them in 2000 and now I'm locked into an 8% interest rate. At that time the rate was respectable, but now it totally sucks! As of this month (February 2009), the balance is around $28k. According to my payment schedule, I still have 3 more years of payments! So, this year I set this financial goal: as long as I remain employed and able to work, I will pay my student loan in full by December 2010 at the latest and July 2010 at the earliest. July 2010 is very aggressive, but I want my emancipation sooner than later! I will post my progress here on my blog. I will be shopping around for debt reduction tickers this week to make it all graphical and pretty. Although I am using an initial amount of $28k as a starting marker, here is a summary of what I've paid so far:

Original student loan amount: $65k
Ballooned student loan amount: $75k
Principal paid (as of February 2009): $47k
Interest paid (as of February 2009): $29k

I encourage everyone to share their stories regarding their struggles and triumphs with student loan debt. Also, during my remaining time in student debt slavery, I will be sharing what I learned in relation to finances, the higher education system and, of course, student loan debt. Please feel free to leverage your thoughts as well!

Have you been enslaved by student loans while seeking the "American Dream" of higher education?