The U.S. is still a mess, blah, blah, blah. I’ve made some changes in my life recently in terms of eating, exercising, and creating space, and it has paid immediate dividends in terms of my physical and mental wellness (mood). I am perhaps as well as I could be under the general circumstances. For that, I am grateful.
This is my first student loan balance update in my new digs and I’m kinda geeked. So, to the numbers!
|Account||Debt||Min. Payment||Interest Rate|
|Private Student Loan 1||$0.00||$110.46||0.000%|
|Private Student Loan 4||-$10,854.06||$245.40||3.875%|
|Private Student Loan 3||-$11,628.07||$153.82||6.670%|
|Private Student Loan 2||-$7,481.42||$93.30||5.410%|
|Federal Student Loan 1||-$21,440.37||$0.00||6.800%|
|Federal Student Loan 2||-$13,946.84||$0.00||5.310%|
|Federal Student Loan 3||-$11,184.47||$0.00||6.800%|
|Federal Student Loan 4||-$7,748.09||$0.00||4.450%|
|Federal Student Loan 5||-$5,561.12||$0.00||4.450%|
|Federal Student Loan 6||-$3,147.30||$0.00||5.600%|
|Federal Student Loan 7||-$2,863.10||$0.00||4.660%|
|Federal Student Loan 8||-$2,457.12||$0.00||6.800%|
|Federal Student Loan 9||-$2,307.18||$0.00||6.800%|
|Federal Student Loan 10||-$2,003.02||$0.00||5.600%|
|Federal Student Loan 11||-$1,639.01||$0.00||6.800%|
|Federal Student Loan 12||-$1,144.25||$0.00||5.600%|
|University Student Loan 1||-$4,204.61||$60.41||8.000%|
|University Student Loan 2||-$3,278.96||$42.43||5.000%|
|University Student Loan 3||-$723.02||$30.00||8.000%|
|University Student Loan 4||-$532.73||$30.00||8.000%|
August 2020 – Student Loan Balance(s): -$117,823.78 (Adjusted: -$116,605.43)
September 2020 – Student Loan Balance(s): -$114,144.74
Difference: $2460.69 – 2nd highest debt payoff month to date!
NOTE: I know. I know what you are thinking. You’re thinking, “Hold up, AfroPenny, the difference between -$117,823.78 and -$114,144.74 is $3679.04 not $2460.69.” I know. But some of you other eagle-eyed readers probably noticed that my table no longer has the line “Car Lease.” That’s because my car lease will come to an end in December and I haven’t figured out what happens then. There is a world where I just return the car (only pay wear-and-tear and a mileage overage), buyout the lease (~$9000.00 – my car is a 2018 with less than 35,000 miles so I couldn’t buy a car in similar condition for that much), or, take a hand-me-down from my parents. All are worthy options and I haven’t decided exactly what I will do yet…
Because this blog focuses on my student loan debt, I don’t really feel guilty about removing this line; the adjusted amount above reflects the removal of the car lease from the August 2020 balance. I will provide an update about the car situation at some point in the future but whatever option I choose, it has to support the long term goal of having zero debt as I end my 30s in 5.25 years.
That aside…not bad! As I shared above, this makes it my second biggest debt payoff month to date. This came down to a couple of predictable things: the continued interest rate abatement of federal student loans, lower interest rates on private student loans, and the fact that I had to hus-tle to pay off Private Student Loan 1 before the balance transfer ended on August 16th.
From now until January 2021, I am focused on building my emergency fund up to $5000.00. I hemmed and hawed as to whether or not I would use my side job money to help me reach this goal. I realized later that I am not as interested in “saving” as I am in debt repayment and that I needed a mindset shift. For now, the goal is to get $5000.00 in my emergency fund by December 31st, 2020, or earlier, by any means necessary. (That sounds far more dramatic than it actually is because I will reach this goal as long as I stay employed).
3 Things for which I am grateful:
1) Being under $115,000.00 in student loan debt.
2) Second highest month in terms of debt repayment.
3) First student loan I have paid off since I started blogging.
And finally, I am grateful for folks who have continued to check in with me and lend support (C and DoubleDebtSingleWoman) and for new folks who have recently stopped by to say hello (Hello Ellen!). Paying off a debt this big is very isolating in real life (way before COVID-19) and I am so very grateful for your support along the way.