Shame is very Motivating

Shame is very Motivating


In continuing my Student Loan saga, based on my research, I am more determined than ever to get rid of this debt. The realization of my complete ignorance in getting into their much debt, let alone, letting it hang around my neck for over 17 years…well, no more. I broke down the details in my last post and explained where this debt is from and more importantly how long it has been here.

Ugh! As of today (5/1/2020 when I am writing this post,) my student loan balance is $33,893.20.

The Plan

Since both loans are being charged the same interest, and the unsubsidized or subsidized doesn’t matter since I am out of school. I think my best bet to is focus on paying the lowest balance loan first.

I realize that keeping them listed as Loan 1 and 2 doesn’t really matter, but having a loan paid off or seeing one’s balance go down significantly faster will be a mental boost for sure.

Thoughts of this plan?

When Not Deferred

When not deferred due to the virus, the required monthly payment is right at $306. So what I’d like to do is start designating that payment to the lower balance loan immediately. It is already in my budget.

Once the deferment period is over, which is currently set for the end of August, they payment will be split between the two loans. Based on my last payments, the split designates approximately $130 of each payment toward this loan.

But for now, I can make some progress on the smaller of the two. The current balance of the smallest loan is $14,131.

Lofty but Achievable Goal

Using very basic math, I divided the current balance by 12. To pay the smallest of these two loans off within the year, I need to pay $1,178 every month on it. And that doesn’t take into consideration the $175ish that is paid to the larger loan every month (when not in deferment) or the interest that will continue to accrue.

So, my dream goal…pay off the smaller two of the loans by May, 2021. Is it possible based on my average income from the past year…yes. But it will be a stretch. In every way.

But with the shame motivating me. I believe I can do it.

And having the next 3 months will the payment solely focused on that loan will help tremendously.

I am glad I went to grad school. I learned a lot, made some amazing life long friends and it definitely has made a difference in my career and earning potential. But there is no word other than STUPID and IGNORANT for how I handled the finances. In hindsight, I would have gone more slowly. I would have paid cash for it.

And I am having these discussions with my children on a regular basis. I do not want them shackled by debt especially when there are ways around it.