Consider me and April Fool. I am completely frustrated and disappointed My dream of paying off my student loans by my 30th birthday are going up in smokes. I was counting on a nice chunk from our tax returns this month to smash another loan that’s towering just over 2K right now. As it turns out, we’re probably going to OWE money this year, instead of get a refund. Seriously. We’re still working out the kinks, but apparently we’re now making too much money and are bumped into the next tax bracket. More Money, means paying a higher percentage of taxes. I guess working harder, getting promoted and rewarded for it will just result in paying the government more money. Not fair. The harder I work my A$$ off, the more money they take from me. Makes perfect sense. Thank Uncle Sam.
OK, done ranting (for now). Back to the numbers. This month I didn’t get my extra payment into Sallie Mae before the end of the month, so although the numbers are weak this month, next month I’ll have over 1K towards the loans.
- Starting Balance: $39,147.53 (Mar 1 ,2013)
- End Balance: $38,812.46 (Mar 31,2013)
- Paid Towards Loans: $512.73
- Interest Paid: $175.91
- Principle Paid: $336.82
Not a big change from last month, but less debt is progress. I’m still bummed about not reaching my next goal. At this rate, I won’t get the next loan paid off until end of summer. Boo. That pushes back all my short term goals…
Short Term Goals Pay off this loans in this order (deadline)
1-08 @ 6.55% (February ’13): $0
- 1-07 @ 6.55% (
AprilJul ’13): $2393.63 <— NOT gonna happen!
- 1-05 @ 6.55% (Dec ’13): $3176.80
- 1-06 @ 6.55% (2014): $5097.73
It just so happens that my bigger loans are at higher interest rates, so I’m trying to pay those off first, and the bigger they get, the further away my goals seem. I could go about it Dave Ramsey’s way and knock off the smaller loans first = snowball method, but the interest on the higher interest loans would hurt me. So I just gotta keep chugging along.
Here’s a glimpse into what my massive spreadsheet looked like this month:
- Pay $352 minimum to Sallie Mae
- Pay an extra $1000 to Loan 1-07 ($2,393.63)
- $40/wk. to VSAC Loans
Reflections Sometimes I’m a little too hard on myself. I paid off a loan last month, and I’ll get this next one paid off in 4 months… not too shabby. Maybe we’ll win the lottery in the meantime and I can stop ranting about my financial troubles. In the meantime, getting these in my email sure do make my day:
What is/was your strategy to pay off your student loans? Did you pay off the higher interest or smaller loans first?
Did you miss the previous posts on this financial challenge? Play catch up here: