Debt After Graduation

I knew when I embarked on my journey for a graduate degree that turned into graduate degrees that I would have to pay money back to good ole Sallie Mae.

I was fortunate enough to get $2,500 a year from my job and a few scholarships from the school but this didn't cover the entirety of my education! 

2020 has been full of change:⁠
⁠
✔️ Graduate⁠
✔️ Get Married⁠
✔️ Quit My Job⁠
✔️ Start a New Job⁠
✔️ Start paying back student loans⁠
⁠

I went from Kalai Fuller, MBA to Kalai Bell, MBA, MS CISBA! Y'all!!!⁠

I went from $30,000 of student loan debt to $72,000. Whew lordt!

via GIPHY

When I looked at that amount my heart broke!!!

I was like "Girl, how you about to pay all this money?". It is so easy to not think about the situation that you will be in after your graduate but come November I will be responsible for paying back about $850 a month towards my student loan debt. 

The plan is to pay off our student loan debt early. The dream is before we buy a house but realistically speaking we cannot pay the combination of both our debts aka $72,000 + $55,000 = $127,000 in the next four years.

Instead of the standard 10 years, we plan on paying off our student loan debt within the next 6 years. In a perfect world, we would have no debts by the time we buy the house in four years but that can only happen if we stack those coins. 

Kitrick and I decided to focus on identifying an amount that we are comfortable paying towards our debt and the period that we are comfortable paying for the debt. 

Identify the amount to pay towards Student Loans

In November, we estimate that the total minimum payment for both our debts will be about $980. In January, this amount might change but we are hoping not to much. 

Yes, I know that is literally rent! But we plan on paying the minimum until the end of 2021 at the end of 2021 we will have all our other debts minus the auto loan and student loans paid off. So we will be able to contribute up to $2,000 a month towards debt so that we can payoff our student loan debts faster. Using this amount allows us to pay for expenses and save money for our future and our children's future. 

A word of advise, do not take 10 years to payoff your student loan debt. The amount of interest that you will accumulate by playing the long game is not worth the burden that you are putting on your future self.

If you are currently in school, then be sure to keep track of your student loan debt amounts. The amount you borrow is your responsibility. 

I encourage you to identify the amount that you are paying back and decide on if you can pay that amount off early.