If you’re new to Money Manifesto, 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.
Lance Cothern, CPA holds a CPA license in Indiana. He’s a personal finance, debt and credit expert that writes professionally for top-tier publications including U.S. News & World Report, Forbes, Investopedia, Credit Karma, Business Insider and more.
Additionally, his expertise has been featured on Yahoo, MSN, USA Today, Reader’s Digest, The Huffington Post, Fast Company, Kiplinger, Reuters, CNBC and more.
Lance is the founder of Money Manifesto. He started writing about money and helping people solve their financial problems in 2012. You can read more about him and find links to his other work and media mentions here.