#Saving money: Paying off Student Loans

I paid off my student loans within 6 years of leaving graduate school. I owed about $28k which was not bad for someone graduating with two degrees in engineering. I decided when I left school that I wold throw as much money as I could afford at my student loans. I didn’t want a $28k loan to turn into $90k in actual a dollars paid over the course of the loan.

My first couple years out of college, I lived as if I was still in school. I had a a roommate or roommates and even at one point worked full time and part time at my college job. I started out by using my part-time job pay to only pay my student loans. Once I got tired of working so many hours I quit my part-time job but still lived very cheaply so no new car, or lavish toys. I was able to get through most of my loan after 5 years. In the 6th year I went to a regular payment schedule and paid off the loan. I would suggest for the first two years after college, you make a sacrifice by throwing a lot of money at your loans.

It is important that when you make extra payments like I did you put the money towards the principle and not the monthly payments. It make a BIG difference. You will be in a better position once you don’t have the burden of  student loan hanging over you head.

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