March 2021 – Student Loan Balance(s) Update

To the numbers!

AccountDebtMin. PaymentInterest Rate
Private Student Loan 1$0.00$110.460.000%
Private Student Loan 3-$8,454.39$153.826.620%
Private Student Loan 4-$9,564.89$245.403.750%
Private Student Loan 2-$7,109.52$93.305.140%
Federal Student Loan 1-$21,440.37$0.006.800%
Federal Student Loan 2-$13,946.84$0.005.310%
Federal Student Loan 3-$11,184.47$0.006.800%
Federal Student Loan 4-$7,748.09$0.004.450%
Federal Student Loan 5-$5,561.12$0.004.450%
Federal Student Loan 6-$3,147.30$0.005.600%
Federal Student Loan 7-$2,863.10$0.004.660%
Federal Student Loan 8-$2,457.12$0.006.800%
Federal Student Loan 9-$2,307.18$0.006.800%
Federal Student Loan 10-$2,003.02$0.005.600%
Federal Student Loan 11-$1,639.01$0.006.800%
Federal Student Loan 12-$1,144.25$0.005.600%
University Student Loan 1-$4,004.61$60.418.000%
University Student Loan 2-$3,090.59$42.430.000%
University Student Loan 3-$568.18$30.008.000%
University Student Loan 4-$370.13$30.008.000%
Total-$108,604.18$765.82

February 2021 – Student Loan Balance(s): -$110,210.06

March 2021 – Student Loan Balance(s): -$108,604.18

Total Payments: $1,739.59

Net Difference: $1,605.88

Not bad. I’ve reached a mini-milestone as I am now under $110,000.00. -$108,604.18 is still a huge student debt load, but each month it gets a bit easier to see my way out. March is going to be a decent student loan debt repayment month, and as of 1st of March, I have already put more towards PSL3 than the total amount I put towards all loans in February. Much of the huge initial payment in March comes from the fact that I am currently staying with my parents, rent free. More on that later this week.

At the moment, I am perhaps the most hopeful I have been at any part in my student loan debt repayment journey. At the beginning of the year, I set a goal of paying off both PSL3 and PSL4 by the end of the year with no real plan as to how I would accomplish this. There is now a plan. My life is incredibly busy right now and some days I am barely holding it together, but I am so incredibly hopeful.

February 2021 – Student Loan Balance(s) Update

No preamble. To the numbers…

AccountDebtMin. PaymentInterest Rate
Private Student Loan 1$0.00$110.460.000%
Private Student Loan 3-$9,646.94$153.826.640%
Private Student Loan 4-$9,782.78$245.403.750%
Private Student Loan 2-$7,174.85$93.305.140%
Federal Student Loan 1-$21,440.37$0.006.800%
Federal Student Loan 2-$13,946.84$0.005.310%
Federal Student Loan 3-$11,184.47$0.006.800%
Federal Student Loan 4-$7,748.09$0.004.450%
Federal Student Loan 5-$5,561.12$0.004.450%
Federal Student Loan 6-$3,147.30$0.005.600%
Federal Student Loan 7-$2,863.10$0.004.660%
Federal Student Loan 8-$2,457.12$0.006.800%
Federal Student Loan 9-$2,307.18$0.006.800%
Federal Student Loan 10-$2,003.02$0.005.600%
Federal Student Loan 11-$1,639.01$0.006.800%
Federal Student Loan 12-$1,144.25$0.005.600%
University Student Loan 1-$4,038.50$60.418.000%
University Student Loan 2-$3,133.02$42.435.000%
University Student Loan 3-$594.42$30.008.000%
University Student Loan 4-$397.68$30.008.000%
Total-$110,210.06$765.82

January 2021 – Student Loan Balance(s): -$111,621.55

February 2021 – Student Loan Balance(s): -$110,210.06

Total Payments: $1,577.31

Net Difference: $1,411.49

Not bad. It feels good to be making real progress again. (A not insignificant amount of which I owe to the continued interest rate and payment abatement on federal student loans). Obviously, recent events have changed some things for me financially. While it’s going to take a couple of weeks for all the unplanned moving costs to shake out, it is my expectation that February will still see a bump in my student loan payment.

Student Loan Target Update

With my “debt snowball-avalance-made-up-ish-but-focused” I am currently targeting Private Student Loan 3 (PSL3). I began targeting PSL 3 in December 2020, after a pause in aggressive debt repayment to establish a three month emergency fund.

January 2021 – PSL3 Balance: -$10,666.59

February 2021 – PSL3 Balance: -$9,646.94

A net difference or more than a thousand dollars. Not bad at all. It felt really good to see this balance drop below $10,000.00. At the beginning of the year I set a goal to have this paid off in June. At the time, I had no idea how I would accomplish that goal; for the moment, it’s still seems possible.

January 2021 – Student Loan Balance(s) Update

Happy New Year!

My only wish for this new year (I know wishes aren’t a thing) is that 2021 is just…better.

With that said, I am feeling extremely motivated and ready to get-it. To the numbers!

AccountDebtMin. PaymentInterest Rate
Private Student Loan 1$0.00$110.460.000%
Private Student Loan 3-$10,666.59$153.826.650%
Private Student Loan 4-$9,997.13$245.403.750%
Private Student Loan 2-$7,235.81$93.305.150%
Federal Student Loan 1-$21,440.37$0.006.800%
Federal Student Loan 2-$13,946.84$0.005.310%
Federal Student Loan 3-$11,184.47$0.006.800%
Federal Student Loan 4-$7,748.09$0.004.450%
Federal Student Loan 5-$5,561.12$0.004.450%
Federal Student Loan 6-$3,147.30$0.005.600%
Federal Student Loan 7-$2,863.10$0.004.660%
Federal Student Loan 8-$2,457.12$0.006.800%
Federal Student Loan 9-$2,307.18$0.006.800%
Federal Student Loan 10-$2,003.02$0.005.600%
Federal Student Loan 11-$1,639.01$0.006.800%
Federal Student Loan 12-$1,144.25$0.005.600%
University Student Loan 1-$4,072.17$60.418.000%
University Student Loan 2-$3,162.45$42.435.000%
University Student Loan 3-$620.48$30.008.000%
University Student Loan 4-$425.05$30.008.000%
Total-$111,621.55$765.82

December 2020 – Student Loan Balance(s): -$112,707.46

January 2021 – Student Loan Balance(s): -$111,621.55

Total Payments: $1,258.51

Net Difference: $1,085.91

It feels really good to be back to making more aggressive debt repayments and seeing my balance meaningfully decrease as a result of my efforts.

If you read my 2020 Financial Review then these numbers aren’t a surprise to you. While writing that post, I realized that looking at the net difference, and not the total payments made, only tells part of the story. Beginning this year, I will record both the total amount I put towards my student loan debt each month and the net difference in my student loan balances.

Student Loan Target Update

With my “debt snowball-avalance-made-up-ish-but-focused” I am currently targeting Private Student Loan 3 (PSL3). I began targeting PSL 3 in December 2020, after a pause in aggressive debt repayment to establish a three month emergency fund.

December 2020 – PSL3 Balance: -$11,355.00

January 2021 – PSL3 Balance: -$10,666.59

I am pretty excited about the progress I made on this loan in December given that my regular monthly paycheck went towards completing my emergency fund. I know it’s going to take some hustle but I would really like to have this loan paid off by the end of June.

Private Student Loan 3 (PSL3)

The time has finally come…

As a result of meeting my three (3) month emergency fund goal on December 1st, today, with my first part-time job paycheck of December, I get to return to aggressive student loan repayment. I. AM. SO. EXCITED! Earlier this year I asked the readers of this blog which student loan(s) I should payoff next. The answer was pretty clear:

I am super curious as to which student loan was being referred to by the person who checked “other.” Alas, I will never know as they did not leave a comment.

With my emergency fund full, and the decision made, I will now direct all of my energies towards paying off Private Student Loan 3 (PSL3).

Balance as of 12/4/2020: -$11,207.28
Minimum Payment: $153.82

I hate this student loan for so many reasons.

1) I hate this student loan because it has terrible terms and I have no way of pausing payments or requesting forbearance should I encounter financial difficulty.
2) I hate this student loan because it has an obnoxious interest rate; as seen above, the current interest rate for this loan is at 6.65% despite a current U.S. Federal Reserve funds rate of 0.25%. At its zenith, the interest rate for this loan was 9.01% (as recent as December of 2019).
3) I hate this student loan because I have paid almost $10,000.00 in interest since it was disbursed.
4) I hate this student loan because, up until the drop in interest rates brought on by the pandemic, almost half of my minimum payment each month went towards servicing interest.
5) I hate this student loan because the balance owed has always been greater than the amount originally disbursed.
6) I hate this student loan because its balance, relative to the amount disbursed, and my debt-to-income ratio, mean that I can’t currently refinance it.

And finally, I hate this student loan for how its continued existence makes me feel about my past financial choices…and myself.

That…that felt good.

Well, today marks a turning point in my relationship with this student loan. Today, I used my entire (ha!) first part-time paycheck of the month to put $166.20 towards this student loan. While it doesn’t seem like much, and it isn’t much, this payment was significant in terms of the change it represented. For the first time since this loan has been disbursed, the balance owed is less than the original amount disbursed.

Original amount disbursed (more than ten but less than fifteen years ago): -$11,049.72
Balance before payment: -$11,207.28
Balance after payment: -$11,041.08

So…I hate this student loan because the balance owed has always been greater than the amount originally disbursed., I have, and will continue, to work my tush off until this student loan is a thing of the past. While I will discuss it a bit more in-depth when I talk about my financial goals for 2021, it is my hope to have this student loan paid off in the first half of next year.

December 2020 – Student Loan Balance(s) Update

To the numbers!

AccountDebtMin. PaymentInterest Rate
Private Student Loan 1$0.00$110.460.000%
Private Student Loan 3-$11,355.00$153.826.650%
Private Student Loan 4-$10,215.87$245.403.750%
Private Student Loan 2-$7,298.74$93.305.150%
Federal Student Loan 1-$21,440.37$0.006.800%
Federal Student Loan 2-$13,946.84$0.005.310%
Federal Student Loan 3-$11,184.47$0.006.800%
Federal Student Loan 4-$7,748.09$0.004.450%
Federal Student Loan 5-$5,561.12$0.004.450%
Federal Student Loan 6-$3,147.30$0.005.600%
Federal Student Loan 7-$2,863.10$0.004.660%
Federal Student Loan 8-$2,457.12$0.006.800%
Federal Student Loan 9-$2,307.18$0.006.800%
Federal Student Loan 10-$2,003.02$0.005.600%
Federal Student Loan 11-$1,639.01$0.006.800%
Federal Student Loan 12-$1,144.25$0.005.600%
University Student Loan 1-$4,105.61$60.418.000%
University Student Loan 2-$3,191.76$42.435.000%
University Student Loan 3-$646.37$30.008.000%
University Student Loan 4-$452.24$30.008.000%
Total-$112,707.46$765.82


November 2020 – Student Loan Balance(s): -$113,191.59

December 2020 – Student Loan Balance(s): -$112,707.46

Difference: $484.13

Okay, that exclamation point might have been a bit misleading and suggested that the numbers would be more exciting than they are. There isn’t really much to see here beyond the slow roll over from -$113,XXX.XX to -$112,XXX.XX. But that changes this week, because…

I reached my three (3) month emergency fund goal of $5,000.00!







While it doesn’t really compare to the elation of paying off a debt, it does feel pretty good. This is actually the most money I have ever had set aside, as an adult, that wasn’t earmarked for some future purpose.

I am beyond thrilled to return to aggressive debt repayment this Friday. Lately, I have been tired (and sick) and shuffling off to my part time job each evening has required a lot of discipline. There were definitely moments where I wondered, “Why am I doing this?” I think it will be much easier to stay motivated now that I know, every two weeks, I will be able to throw a bit more cash at my balance and begin to see it meaningfully decrease.

On Friday, I will share the results of the poll where I asked the pennyfolk (it’s how I refer to you all in conversations with myself) which student loan I should payoff next, and I will make my first non-minimum debt payment in three months!

November 2020 – Student Loan Balance(s) Update

To the numbers…

AccountDebtMin. PaymentInterest Rate
Private Student Loan 1$0.00$110.460.000%
Private Student Loan 3-$11,447.27$153.826.660%
Private Student Loan 4-$10,429.97$245.403.750%
Private Student Loan 2-$7,361.36$93.305.160%
Federal Student Loan 1-$21,440.37$0.006.800%
Federal Student Loan 2-$13,946.84$0.005.310%
Federal Student Loan 3-$11,184.47$0.006.800%
Federal Student Loan 4-$7,748.09$0.004.450%
Federal Student Loan 5-$5,561.12$0.004.450%
Federal Student Loan 6-$3,147.30$0.005.600%
Federal Student Loan 7-$2,863.10$0.004.660%
Federal Student Loan 8-$2,457.12$0.006.800%
Federal Student Loan 9-$2,307.18$0.006.800%
Federal Student Loan 10-$2,003.02$0.005.600%
Federal Student Loan 11-$1,639.01$0.006.800%
Federal Student Loan 12-$1,144.25$0.005.600%
University Student Loan 1-$4,138.83$60.418.000%
University Student Loan 2-$3,220.95$42.435.000%
University Student Loan 3-$672.09$30.008.000%
University Student Loan 4-$479.25$30.008.000%
Total-$113,191.59


October 2020 – Student Loan Balance(s): -$113,667.51

November 2020 – Student Loan Balance(s): -$113,191.59

Difference: $475.92

Nothing to see here. I continue to make minimum payments on all of my student loans as I take a respite from accelerated debt repayment to beef up my emergency fund to $5,000.00, which I will achieve in December.

As I stated last month, the current interest rate abatement on federal student loans means this is a bit less painful than it could have been as I don’t have to watch my overall balance increase from interest accruing on my federal student loans. The other bright-note is that interest rates continue to drop, which isn’t great for saving, but it means my minimum payments go that much further each month.

On election day (cause I’ve already voted and need a distraction), I will come clean about October spending (yikes) and my November budget forecast.

October 2020 – Student Loan Balance(s) Update

Okay, this is the post I have been dreading. The one where I have to reflect on making negligible student loan debt repayment progress because I am focused on beefing up my emergency fund to cover three months worth of expenses ($5,000.00).

Ugh. To the numbers…

AccountDebtMin. PaymentInterest Rate
Private Student Loan 1$0.00$110.460.000%
Private Student Loan 4-$10,642.35$245.403.750%
Private Student Loan 3-$11,536.88$153.826.670%
Private Student Loan 2-$7,420.84$93.305.400%
Federal Student Loan 1-$21,440.37$0.006.800%
Federal Student Loan 2-$13,946.84$0.005.310%
Federal Student Loan 3-$11,184.47$0.006.800%
Federal Student Loan 4-$7,748.09$0.004.450%
Federal Student Loan 5-$5,561.12$0.004.450%
Federal Student Loan 6-$3,147.30$0.005.600%
Federal Student Loan 7-$2,863.10$0.004.660%
Federal Student Loan 8-$2,457.12$0.006.800%
Federal Student Loan 9-$2,307.18$0.006.800%
Federal Student Loan 10-$2,003.02$0.005.600%
Federal Student Loan 11-$1,639.01$0.006.800%
Federal Student Loan 12-$1,144.25$0.005.600%
University Student Loan 1-$4,171.83$60.418.000%
University Student Loan 2-$3,250.02$42.435.000%
University Student Loan 3-$697.64$30.008.000%
University Student Loan 4-$506.08$30.008.000%
Total-$113,667.51$765.82


September 2020 – Student Loan Balance(s): -$114,144.74

October 2020 – Student Loan Balance(s): -$113,667.51

Difference: $477.23

So…yea. That does not inspire the warm and fuzzy feelings I had on September 1st after having my second largest debt payoff month to date. To be fair, it could be a lot worse. I am very fortunate to be taking this savings respite from debt repayment during the continued interest rate abatement for federal student loans. Were that not the case, there is a very real chance I could have seen my overall student loan balance grow this month. *shudders*

There really isn’t much else to say this month about my student loan debt repayment. However, on the heels of a meaningful change in income, questions about savings, and some reflection on my blog, I’ve decided I probably need to share my budget again. 😨 That will happen…tomorrow.

September 2020 – Student Loan Balance(s) Update

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!

AccountDebtMin. PaymentInterest Rate
Private Student Loan 1$0.00$110.460.000%
Private Student Loan 4-$10,854.06$245.403.875%
Private Student Loan 3-$11,628.07$153.826.670%
Private Student Loan 2-$7,481.42$93.305.410%
Federal Student Loan 1-$21,440.37$0.006.800%
Federal Student Loan 2-$13,946.84$0.005.310%
Federal Student Loan 3-$11,184.47$0.006.800%
Federal Student Loan 4-$7,748.09$0.004.450%
Federal Student Loan 5-$5,561.12$0.004.450%
Federal Student Loan 6-$3,147.30$0.005.600%
Federal Student Loan 7-$2,863.10$0.004.660%
Federal Student Loan 8-$2,457.12$0.006.800%
Federal Student Loan 9-$2,307.18$0.006.800%
Federal Student Loan 10-$2,003.02$0.005.600%
Federal Student Loan 11-$1,639.01$0.006.800%
Federal Student Loan 12-$1,144.25$0.005.600%
University Student Loan 1-$4,204.61$60.418.000%
University Student Loan 2-$3,278.96$42.435.000%
University Student Loan 3-$723.02$30.008.000%
University Student Loan 4-$532.73$30.008.000%
Total-$114,144.74$765.82


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.

PAID IN FULL – Private Student Loan 1 (PSL1) / Was the balance transfer worth it?

When I logged in this morning to pay off the remainder of Private Student Loan 1 (PSL1), I didn’t really “feel” anything after I paid off the remainder of the balance transfer. So then I logged into the original creditor’s website and saw the above landing page. A year ago when I saw this when I transferred the balances from my lender to two separate credit cards I felt excited to have a plan but the image above didn’t really resonate with me. My loan wasn’t actually “paid in full.” Today, it feels a bit different. This was the last student loan I took out (will ever take out!) and it felt significant to pay it off. Not like I erased the years and made better decisions significant, but significant to the extent that it represents me recovering from my poor financial choices and moving forward.

Private Student Loan 1 Payment Recap 

This loan was targeted for repayment first because while it had an average balance with respect to my other student loans, it had a ridiculous interest rate for a student loan. From January to March of 2019, it peaked at 10.115%! To highlight how ridiculous this student loan rate was, consider that the credit card to which I transferred most of the balance, my Discover It Card, only has a interest rate of 11.99%. Yes, my student loan interest rate was within two percentage points of my credit card interest rate.

As this was significantly higher than any of my other student loans and combined with the emotional pull of it being the last (and in my eyes the most frivolous) student loan I took out, it was an easy choice.

Minimum Payment: $110.46

-$10,231.32 – Balance on July 4th when I started this blog AND began targeting this loan
-$9,812.49 – August 1, 2019 balance
$10,145.50 Balance after balance transfer to credit cards; new amount includes balance transfer fees of $295.50 (and an over-payment of $32.21)
-$9,919.10 – September 1, 2019 balance
-$9,550.00 – October 1, 2019 balance
-$9,225.00 – November 1, 2019 balance
-$8,800.00 – December 1, 2019 balance
-$8,600.00 – January 1, 2020 balance
-$8,400.00 – February 1, 2020 balance
-$7,200.00 – March 1, 2020 balance
-$6,100.00April 1, 2020 balance
-$3,700.00 – May 1, 2020 balance
-$2,800.00 – June 1, 2020 balance
-$2,350.00 – July 1, 2020 balance
-$1,900.00 – August 1, 2020 balance
$0.00 – August 3, 2020 balance; will be reflected in student loan balance update on September 1st

Total interest saved: $522.00
Balance transfer fee: $295.50
Actual amount saved (interest saved – balance transfer fee): $226.50

Was the balance transfer worth it?

In the grand scheme of things $226.50 doesn’t seem like a lot of money. However, that is also $226.50 of my own money that I didn’t have to give someone else. And if I was asked to spend $226.50 on something at this very moment, I could not think of what I would spend it on… So financially, was it worth it? The answer has to be “yes.”

However, unless I paid of my loan really quickly, then that was always going to be the case. There was more than likely going to be some savings from the balance transfer. In an earlier post, I reviewed the benefits both financially and psychological to the balance transfer. In that post, the take-a-way is that most of the benefits of the balance transfer would appear to be psychological, and in reality, I found that very much to be the case. If you look at my repayment log above, I didn’t really get serious about paying off this balance and pushing myself hard to make big payments until February/March of this year. Why? Because I realized the balance transfer would be ending soon and that I needed to make big payments if I had any hope of paying it off (AND being a balance transfer “failure” and avoiding the embarrassment of having to write a post about it). This forced me to make sacrifices and adhere more strictly to my budget to make those big payments. While this was good for my student loan balances, it also had the additional psychological benefit of making $1,000.00/month additional debt payments seem “doable,” whereas before they were just something I could do in theory. Now, every dollar spent that takes me further away from being able to make a $1,000.00 payment on the first of the following month feels real and like I failed a bit. So when I make that $700.00 additional payment, I no longer think about getting a reward for my sacrifice, instead, I now think, “I could have paid more. I have previously paid more.” That shift in mindset is invaluable. So, was it worth it from a psychological perspective? An emphatic “yes.”

Would I do it again?

I don’t know. While that might seem a bit surprising given my answers above, it really shouldn’t be. The current financial environment is much more fraught that it was a year ago. I didn’t feel like I had the flexibility to decelerate my student loan payments toward this debt because of the balance transfer which means I didn’t start to increase my savings in response to the pandemic. While that is now my plan, had I not had the balance transfer, I think I would have done this much, much sooner. While the current pandemic is unprecedented, it highlights how drastically your financial situation can change very quickly and highlights the principle downside to the balance transfer method: the loss of financial flexibility.

August 2020 – Student Loan Balance(s) Update

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

Difference: $1,296.20

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.”