The Story of My Student Loan Debt

paying back federal loansI can remember it like it was yesterday… Standing in line at the financial aid office of my university, waiting to turn in an application for the student loans that would make it possible for me to earn a Bachelor’s degree. I was about to get myself into student loan debt.

I probably should have been nervous about taking on student loan debt, but paying it back was so far off into the future that I barely gave it a thought. It was something to worry about some other day, years down the line.

An Associate’s Degree Paid in Cash

After high school, I took the debt free route to higher education. I considered a few state schools, but ultimately, I settled on community college. My parents offered to help pay, gave me a car to use, and allowed me to continue living at home for free. I went to school full-time and worked part-time, even paying for most of the semesters on my own, simply because I wanted to.

When I graduated with an Associate’s degree, I was pretty proud of myself. I had worked hard, kept up my GPA, and had done it all without getting into any debt. Next, I started thinking about transferring to earn my Bachelor’s.

Making a Move

I enrolled in a nearby university, but from the moment I set foot on the campus, I just knew that it wasn’t right for me. The price was right-very affordable, but the commute and the program just weren’t.

I remained uncertain and uneasy until the last minute. The night before my first classes were set to begin, I backed out. I wasn’t sure what I’d do next, but that particular school wasn’t it.

After a few months, an exciting possibility came up. It involved moving to another state, one much warmer and sunnier than Pennsylvania. It offered an ideal living situation and a reputable university. I applied to the school, got in, and headed down to Florida.

Applying For Loans

Like 85% of other students these days, I applied for and was granted financial aid. Taking out the federal loans didn’t seem so bad; I figured I would just worry about them sometime in the future.

Unfortunately, my plans came crashing down when I couldn’t secure enough loan money to cover the full cost of tuition. I didn’t have anyone willing to co-sign for me, so all I could get were 2 federal loans. After 2 semesters, I had to put my pursuit of a Bachelor’s degree on hold.

On the one hand, I’m that I didn’t get myself into even more debt with private loans, but on the other, I wasn’t able to complete my degree where and when I wanted to. I was stuck with several thousand dollars in federal loans, and no degree to show for it.


One of the biggest mistakes I made with my student loan debt was not paying it back ASAP. I cruised through the months without giving my debt much thought, and when the time came to start making payments, I applied for, and was granted, a deferment. I was in between jobs at that point, and it seemed like a good offer, so it gave me another year to forget all about my debt.

After the deferment year had passed, the bills started rolling in. I still didn’t grasp the urgency of unloading this debt, so I made the minimum monthly payment. I was also completely ignorant to how interest worked and to where my payments were being applied.

Waking Up to the Reality of Student Loan Debt

I’m not sure when exactly it hit me that I needed to dump this debt load, but I eventually reached a point where I was tired of making those payments month after month, year after year. I had taken out the loans in 2005-2006, and here I was still paying it off in 2012!

Finally, after years of paying the minimum and racking up interest, I started getting aggressive with repayment. I made a goal to have it paid off by my daughter’s 2nd birthday in April of 2013. There were weeks where it looked like I may not meet my deadline. I hustled hard with freelance writing and was able to finally make that last payment ahead of schedule.

Sending that final payment off was huge! It was an accomplishment like no other.  After carrying that monkey on my back for years, I could finally breathe easy. I was debt-free for the first time in years.

A Debt-Free Future?

Now that I’ve been free from debt for almost a year, I never want to go back to that place again. I do hope to eventually finish that Bachelor’s degree, and I think about how that might be possible without taking any loans. It would be tough, but not impossible. For now, I’m enjoying the fact that I no longer have to send off my hard earned money to a creditor every month.

Did you take out student loans?  Have you finished paying them off? 

20 comments on “The Story of My Student Loan Debt

  • Weekly Wrap-Up #10- Is My PF Blogger Card Revoked? - The Write Budget , Direct link to comment

    […] Thanks to our emergency fund/savings account, we were able to put down a significant amount. I have an excellent credit score, which scored me a nice low monthly payment with a low interest rate. The loan term is for 60 months, but we’re confident that we’ll be able to pay it off in half that time, or less. After all, I hate having debt, and I know how to work hard to get rid of it. […]

  • When Freelance isn't Fulfilling - The Write Budget , Direct link to comment

    […] Once my daughter was born, we moved overseas. There were few options for me then, as a stay at home mom to a baby, and an expat in a country where I had a tenuous grasp of the language. I had always been a strong writer, and I was a blogger. Freelance writing online for money practically fell into my lap, and it seemed absolutely ideal. I could stay home with my daughter, work from the computer, and make money to pay off my student loans. […]

  • Emergency Funds - Monday Monologue #8 | The Weight Of Debt , Direct link to comment

    […] Dollar • 3 Steps We Took to Develop Financial Success in Our Marriage – Luke1428 • The Story of My Student Loan Debt – The Write Budget • Blogging for Passion or Loot? – Debt Free Martini – Thanks for the Mention […]

  • Bridget , Direct link to comment

    I graduated with nearly $21,000 in student debt… but it inspired the blog so I guess that’s an upside 😉

    I paid it off in 2 years, and now I’m back in school and sort of back in debt (I opted for student loans instead of selling stocks haha)

    c’est la vie

  • Monday Monologue #8 | , Direct link to comment

    […] Dollar • 3 Steps We Took to Develop Financial Success in Our Marriage – Luke1428 • The Story of My Student Loan Debt – The Write Budget • Blogging for Passion or Loot? – Debt Free Martini – Thanks for the Mention […]

  • Jon @ Our Fine Adventure , Direct link to comment

    Congrats on getting them paid off! I got loans when I went to school as well, and the portion that was accruing interest (even though I didn’t “owe” money yet) was killer to me!

  • John @ Frugal Rules , Direct link to comment

    Congrats on being debt free and hitting it before your goal! I brought about $20k of loans in to our marriage and paid the minimum, after deferring them as long as I could, for years. We paid them off in full about 5-6 years ago and was a pretty awesome feeling to be free of them.

  • Ryan @ Impersonal Finance , Direct link to comment

    I brought about 40k in student loans into my marriage, which we let sit there, deferring for a while, then paying the minimum on, like idiots, for a couple of years. Once we got the rest of the debt out of our way, we were able to pay them off in about 12 months. It took A LOT of hard work, but it’s awesome to be able to no longer have them hanging over my head. I only wish I had been smarter when taking them out in the first place… Congrats on paying yours off, especially ahead of schedule!

  • Holly@ClubThrifty , Direct link to comment

    My husband brought about 20K of student loans into our marriage and we paid the minimum for what seemed like forever. We finally paid them off in one lump sum a few years ago and it was a sweet feeling!

    • Lauren , Direct link to comment

      It stinks to be the one that brings the debt into the marriage, but I’m glad my husband was so supportive and helped me kick the repayment into high gear. Sending off that last payment really is sweet!

  • Liz , Direct link to comment

    Oh yes we had student loans. It isn’t easy paying them back but we hope to be finished in about two years. I can only imagine how great it will feel to be student loan debt free!

    • Lauren , Direct link to comment

      Good luck with your repayment goal! When I finally made the last payment, we celebrated with a few drinks 😀 It was such a relief.

    • Lauren , Direct link to comment

      Thanks Stefanie! It’s so easy to keep paying the minimum without facing the reality of interest rates. Once you actually calculate those numbers, it really smacks you in the face and hopefully creates a sense of urgency.

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