Last Student Loan Debt Update Before Marriage – July 2013

SynchronySavingsSingleWidget728x90
Get it?

Get it?

If you’re new to Money Life and More, in December 2012 we decided it was time to open up to you, my readers, and shared our very first debt update.

Student Loan Debt Update – July 2013

This is the last student loan update before we get married! Tori made great progress toward her student loan debt this month, but we’ll be making even more progress next month after we combine our finances.

Tori is still on disability and not making her full wage, but she’s getting better and better every day! After she goes back to work we’ll have even more money at our disposal to destroy her debt. We received our first rent check from our townhouse this month as well, which frees our budget up a bit to add more to the pay down.

Private Student Loan 1 – 8.0% Variable

The current balance on this student loan is $3,241.15. This is a decrease of $756.07 since the last debt update. We are paying this loan off first because it has the highest interest rate and is also a variable rate. It originally was well over $20,000 when my fiancee began paying this down after college in 2011.

Federal Student Loan 1 – 6.55% Fixed

The current balance on this student loan is $7,551.17. This is a decrease of $54.88 since the last debt update. This will likely be the 4th student loan we pay off.

Federal Student Loan 2 – 6.55% Fixed

The current balance on this student loan is $7,094.97. This is a decrease of $51.83 since the last debt update. This will probably be the 3rd student loan we pay off.

Federal Student Loan 3 – 6.8% Fixed

The current balance on this student loan is $3,869.62. This is a decrease of $28.91 since the last debt update. This will be the second student loan we pay off because it has the second highest interest rate AND the lowest balance. On top of that, we hate the bank this loan is through so it gives us even more reason to pay it off.

Private Student Loan 2 – 5.75% Variable

The current balance on this student loan is $22,277.87… ouch! This is a decrease of $59.78 since the last debt update. This is the highest balance loan but it has a lower interest rate for now. Unless interest rates start rising we’ll wait to pay this loan off until the federal loans are paid off.

Private Student Loan 3 – 4.75% Variable

The current balance on this student loan is $8,184.63. This is a decrease of $26.90 since the last debt update. This is the lowest interest rate loan and, unless interest rates rise, this will likely be the last loan to be paid off.

Total Balance – $52,219.41 (-$978.37)

Our realistic goal is to have the student loans completely dead by the end of 2016. However, if things continue to go well with my side business and Tori doesn’t have to continue having more foot surgeries, we may be able to get this debt paid off much sooner than anticipated… more news on that in the coming months.

Do you have any debt you’re trying to pay off? Do you have a goal for when you want it paid off by?

Like What You See?

Join the other readers who have signed up for our email newsletter! No spam, just periodic updates to help improve your finances!

About Lance Cothern

Lance Cothern, a Certified Public Accountant (CPA) licensed in the Commonwealth of Virginia, is the founder of Money Manifesto. You can read more about him here or connect with him on Facebook, Twitter, Google+ or Pinterest.

Comments

  1. Hey, that really isn’t that bad. Honestly, I know people with a lot more student loan debt….and they aren’t really taking it that seriously yet. Great job on the progress!

  2. Whether it is student debt, mortgage or some other loan, it is a goal and you measure your progress. The only difference between between a debt any other goal is debt is quantitative and much easier to measure progress. Keep going, but don’t lose sight of retirement savings too.

Share Your Thoughts

*