The U.S. is still kind of a mess, but I am feeling a bit more like myself this month in terms of my finances. I think making the decision to stay in my current apartment reaffirmed my commitment to getting rid of my student loans as soon as possible, and getting a part time job also helped me feel like I was making progress towards that. So, to the numbers…
July 2020 – Student Loan Balance(s): -$119,119.98
August 2020 – Student Loan Balance(s): -$117,823.78
Not my best month, not my worst. The continued administrative interest forbearance for federal student loans means my regular minimum payments continue to go a bit further. I didn’t pay a lot extra in July on my student loans but August should be considerably better and result in me paying off my first student loan, Private Student Loan 1 (PSL1), since I started blogging. Prior to beginning this blog a little over a year ago, I paid off one of the smaller loans.
I’m excited about my new part-time job and my ability to save and pay down my debt a little bit faster. Once PSL1 gets paid off next week (only a week prior to the balance transfer ending), I think I will begin putting all of my additional income towards beefing up my emergency fund to $5000.00. I will achieve this goal by the end of the year assuming I remain employed. After that, I will once again throw any additional income towards my student loans. I keep going back and forth on what the payoff order will be. While part of me would love to switch to the Ramsey method for the instant gratification of paying off some of those smaller loans, the other part of me wants to start paying off my first federal student loan, the largest of all of my loans by far, and the one that accrues the most interest each year. I will see how I am feeling in December once my emergency fund is beefed up and make that decision then.
I will be back sometime next week once I pay off the balance transfer to celebrate dispatching my first student loan on this blog and calculating whether or not the balance transfer was “worth it.”