Taking part in my money pal Jackie over at The Debt Myth and her January Debt Is Not Forever campaign, let’s show a prime example of how you can tackle your student loans. Drew is a professor of Cinema Studies over at Texas A&M University-Texarkana. Not only is he an ace film scholar and a pretty cool puppy dad and hubbie, he is living on a tight budget so he can aggressively pay down his $40k student debt within four years.
What is your mega money goal?
I’m saving towards paying off my student loan in four years.
I started with $40k from graduate school. I told myself at the beginning of 2014 that I would pay $5k every six months (in addition to what I normally pay) and I’ve easily hit the first two marks while keeping $10k in the bank.
Aside from the occasional “Oh shit!” moment (i.e., getting my car fixed, taking my dog Pabst to the vet, getting a new pair of glasses), I’ve pretty much trimmed to the bone. I’ve always been this way, which is why I don’t feel particularly guilty about splurging on my one vice: DVDs.
How do you pull it off?
I spend $30 a week on groceries (in Texas); $40 a month on gas; and we don’t have cable. The main unavoidable expenses I have are going back to California—where my wife lives—and paying for part of that apartment. It ain’t fun and it’s a little heartbreaking to watch my bank account drop $5k every 6 months.
Sounds like it requires a lot of self-discipline.
I think a lot of it has to do with what you grew up with. My parents didn’t have much; we’ve always been scavengers (I feel like an eccentric recluse sometimes because I hardly have furniture in my Texas place simply because I don’t use anything other than my couch, bed, and desk).
I go to work and home and stay in town. There’s nothing within a one hour radius; I’d have to drive to Dallas or Little Rock (which are both three hours away). It also helps that Texas doesn’t have a state income tax.
Any tips for those trying to crush their student debt?
Always look at your payoff balance. Odds are you’re just walking in place by paying the interest. Secondly, do not consider the Public Service Loan Forgiveness Program as being a golden parachute. By the time you make ten years of payments, you’ll have spent a great deal of money. So plan accordingly.
photo credit: ouvyt via photopin cc
Obama’s Public Service Loan Forgiveness Program isn’t a “get out of jail free” card, but for people making less money by working in non-profit vs. private sector, it’s still a nice kickback regardless. 😉
Agreed Aaron. I think it is a great benefit for those who make less money and work in the non-profit or gov’t sectors. I think it could really save you money and alleviate your debt burden, depending on your situation. I highly suggest doing your own research on it. Also there were some changes on student loan plans made in 2014, which could also help you alleviate debt: http://www.usnews.com/education/blogs/student-loan-ranger/2014/06/11/4-must-know-facts-about-obamas-new-student-loan-plan