Last May, I graduated the University of Nevada, Reno with a Bachelor’s Degree in Marketing. As I walked across the stage I was handed my diploma and $27,000 of federal student loan debt.
Since it’s graduation season and many of my friends will be entering the business world on their own, I thought I would share how I paid off all of my student loans in one year!
Work Two Jobs, or Maybe Three
This may seem like the easiest piece of advice, but many students are not motivated enough to start working 60+ hours a week right after graduation. Many study abroad, work part time and take it easy the first summer. Unfortunately most student loans are already incurring interest while you’re taking it easy during summer. This is the only way to pay off your student loans…work, work a lot. Make a goal for yourself to commit one year to nonstop work so you can enjoy being debt free for life.
Just stay still for at least one year. Have your friends come to you and don’t waist money on vacationing because guess what, you have so many jobs you probably can’t get the dates off anyway. Sure, one year can seem like a long time, but you will end up paying so much less in one year than you would if you did in 5 years or even 10. If it makes you feel better I took off a total of 1 full day in 6 months, that’s the kind of commitment it takes to pay off your student loans in a year.
Get a Mint Account
Go to Mint.com, get an account, link it to every account possible, and BUDGET. Pay your bills on time and don’t overspend. This takes self discipline, but hey, you got through 3 hour lecture classes, you can be in charge of your own bank account and your future.
Make Payments Weekly
The more often you can make payments on your loans, the better. If you can manage to pay some amount every week, this will save you small amounts, but every little bit helps.
Say bye-bye to Birch Box, Dropbox, Ipsy, Stichfix, Cosmopolitan and any other monthly subscription you have. Remember the goal and you will have something to look forward to this time next year.
Give The Gift Of Words
So you went to some fancy college and became educated, well now its time to use your eloquent vocabulary to write beautiful cards. This year, all presents will be made with paper and a pen. Save money on gifts and explain why you couldn’t splurge this year on Christmas, your true friends and family will understand and respect your determination (so long as you don’t buy anything new for yourself).
All of these things may seem like common knowledge but they are harder to implement than you think. I am so thankful to be done paying off my student loans and I feel so relieved to not have any debt hanging over me. And I must say, if Kyle and I can get married the same year we paid off $27,000 of my loans and $9,000 of his, you can do it!
Share some of your budget savvy tips on how to pay off student loans in a year in a comment below, I would love to hear them!