Our Student Loans Are Fully Paid Off!

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This is a post I’ve been looking forward to writing for a long time. At long last, on March 8th, 2018 we made our final payment on our student loans. What was originally $40,000 of combined student loan debt has been finally paid off! This is a huge accomplishment for us and is an incredible feeling.

Our student loans felt like a big weight on our shoulders, like a burden needing to be lifted. With each payment that we made, and the closer we became to having the loans paid off, the more freedom and peace we felt. Making the final payment wasn’t a life changing moment, but the whole payoff process has been. We’ve become more mindful with our spending decisions and seen that we can make huge progress towards our biggest goals.

Our Debt Payoff Timeline

The date was significant for a couple reasons. 4 years ago, March 8th was the day I proposed to Mrs. Spills. Also, last year March 8th was the day I lost my job and the start of a new path. This year, March 8th marks no more student loan debt.

Here’s the timeline of how it all went down:

• May 2013: My wife and I graduated school with $40,000 in student loans combined
• November 2013: We waited the 6 month grace period and then began making minimum payments
• November 2013 – January 2016: Continued making minimum payments, occasionally putting a few dollars extra towards them. (Other dates of note during this time: We got married in September 2014. Landed my first full-time role in May 2015, and became a salaried employee in August 2015.
• January 2016: Had $27,000 left
• January 2016 – November 2016: Paid off $15,000 in 10 months
• November 2016: $12,000 left. At this point we shifted our focus to building up more savings.
• March 8th, 2017: Was laid-off from my employer, began looking for a new job
• May 2017: Started my new job, built up savings and started making additional payments again towards our debt
• March 8th, 2018: Student loans fully paid off (4 years, 4 months total payoff time)

It’s been quite a journey. In some ways it has felt extremely long, and in some ways the progress has felt fairly steady.

What I hate most about debt is the restriction it creates. It is a monthly bill that must be paid no matter what. You’re trading your future dollars away and losing the option to decide how to spend them, those dollars have already been allocated. While we don’t regret our student loans, having them paid off brings freedom and options. It means an increase in our cash flow. Now the gap between our income and expenses can be used for ourselves, to increase our net worth and build a firm financial future. I’m excited for what the future will bring for us!

Full Debt Freedom Still to Come

We’re not quite fully debt free, as we still have about $7,000 left on a car loan. However, as I mentioned in last week’s post this debt doesn’t bother me nearly as much as our student loans. This is due to the low interest rate and the number of options we have of eliminating it. If it came down to it, we could sell the car or pay the full loan off in cash, but we’re choosing to hold on to it a little bit longer to balance being able to invest at the same time. We’ll be putting a good chunk of money towards our car loan this month and will more than likely have it paid off in the next 6-12 months.

The Biggest Keys for Us

I’ve written a long post detailing the factors that helped contribute to paying off $15,000 in a span of 10 months. Ultimately, the biggest keys can be distilled down to a few simple points. First, motivation was paramount. Dave Ramsey’s Financial Peace University helped spark this motivation in us, and we made our student loan payoff our number one financial priority each month. As soon as the bills were paid and some money invested into our 401k’s, the extra money we had went towards our debt.

This motivation was fueled by tracking our expenses and making mindful purchasing decisions. By cutting back on the excess, we increased the gap between our income and expenses, which led to more money being put towards our debt payoff.

You Can Do it Too

I don’t feel like my story is all that unique or out of the ordinary, but that’s why I choose to tell it. My message is that you can do this too. You don’t need to have a radical debt payoff story, you just need to make small consistent progress over time. If you’re reading this and you have student loans that feel like they’ll never be paid off, just know you’re not alone. Get started, throw every spare dollar at the debt and keep chipping away at them slowly over time. The progress may not feel like much, but keep pushing forward, every small bit makes a difference. Eventually that you’ll have climbed that mountain that seemed insurmountable and your student loans will be defeated.

As always, thank you all for following along throughout our journey. The support of the community has been incredible!

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