I have about $3,200 in my student loan balance and about $112,000 in my mortgage loan balance. My student loan interest rate is at 3.875% and my mortgage loan rate is at 5.75%. I have $5K cash that I can use to contribute towards my loans. At first, I wanted to use the extra money to pay off my mortgage loan first, since that has a higher interest rate. But, after consulting with my accountant, he told me to pay off the student loans entirely. This way it would allow me to could focus on the mortgage.
I went online and sent a payment online to my student loan provider for the payoff amount (which is different from the balance – it’s higher actually). After the payment is sent, I can say that I am freed from student loans.
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From 112K to under $4K, Wow!!!
That is amazing, how did you do it in such a short time ?
Sorry GM, I misread it. I notice the 112K was your mortgage balance.
congratulations on getting rid of your student loan, I have starting the long process this year of trying to pay down mine as quickly as possible, likely around 5 or 6 years.
[...] Why did you start this blog? Initially, I wanted to keep track of my student loans. I started out with 30K in student loans and I established a plan to pay them off. I gave myself a deadline and a roadmap to achieve the goal. I was able to meet my goal and cleared out my student loans in November 2006. [...]