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#FrugalSuccess Story – October 7th, 2013

Paying Off Your Student Loans in A Year!

Some #FrugalSucess Stories are not about how much money you saved, but rather how you smartly used your saved money to stay ahead. Paying off your student loans is one of the major accomplishments that will relieve you of so many financial burdens and stresses. This is a smart place to put your money and we’re here to talk about a success story in finishing up student loans.

kristen wong get rich slowly

Today, we take a look at Kristin Wong, who writes for Get Rich Slowly. Her student loans amounted to a fourth of my total, but the trick is she paid it off in only a year! (I – on the other hand – had about $48,000 in student loans and only managed to pay it off after 10 years). So, how did Kristen do it? You can read her full story on Get Rick Slowly, but here’s the summary:

Date of Kristen’s Graduation: December 2005

Amount Owed: $12,000

Type of Loans: Private loan with 8% interest rate

Key Steps (including some sacrifices and fights along the way with her parents):

  1. Do not take travel vacations outside the country
  2. Focus on paying off the loans and put all (or most) of your extra money towards the loans
  3. Pay attention that the payments get applied to the principle as much as possible
  4. Move in with your parents to save on rent

If you are looking to pay off your student loans, take note from Kristen’s experience and tips! If you have any of your own, feel free to share them in the comments so we can all learn.

About Jessica J.

A native New Yorker, Jessica left behind the Big Apple almost 4 years ago to pursue new adventures around the world. Powered by caffeine and a relentless curiosity, she has now settled in Tel Aviv Jaffa with her husband, American cat, and a new appreciation for budget management.

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I considered writing about someone else with a great success story but then I thought …

  • Amazing! It’s so true. I’ve met people with huge debt due to student loans and I don’t see them putting in enough effort into paying them off. Other things seem to get higher priority in their life. I can’t imagine being in that situation and not feeling the constant burden of debt and awareness of the interest rate.