How did you pay off your student debt?

jadelpn, LPN, EMT-B · Dec 4, 2015

You need to look at your income, and budget accordingly.

If you have direct deposit of your checks, open 2 accounts. One of which the total amount of your monthly bills are deposited,(house, car, loans) and have them take it directly out of that account. Any extra in your account to use as you see fit, and for unknowns (utilities, groceries that kind of thing)

When you have that 3rd paycheck in a month, divide it into 3's. Meaning 1/3 goes to the principal of your student loan, 1/3 to the principal of your mortgage (and if you do not have a mortgage up your student loan principal amount) and the other 1/3 stays in the account as a bit of a cushion.

Take $50 a paycheck from your account and put it into savings.

Any unexpected monies if you get a raise that kind of thing take the extra and divide that amount into making principal payments.

Best wishes!

loriangel14, RN · Dec 4, 2015

I got a job and used my earnings to pay it back. The thing that stopped me from making larger payments was other bills.

elkpark · Dec 4, 2015

I didn't have any debt from my BSN completion program, but I did take out some loans for grad school. I worked part time, embraced the "starving student" lifestyle, applied for every scholarship/grant I could find for which I qualified (and got a couple good (generous) ones!), and was careful not to take out a penny more in loans than absolutely necessary. After I graduated, as loriangel notes, I got a job and made the monthly payments until the loan was paid off.

I didn't use any private loans. The repayment period for the federal loans was ten years, and I paid them off over ten years. That was not a terrible burden or difficulty. My best advice for student debt is not to take on any more than absolutely necessary. I was in grad school with classmates who were not working and were financing the entire program, inc. all their living expenses (at an expensive, well-known school in an expensive city), with student loans and living a much "cushier" lifestyle than I was (buying new clothes and "toys," going out a lot, etc.). Some that I knew were going to graduate with four or five times the debt I was. I have no idea how they managed to deal with that over time.

TheCommuter, BSN, RN · Dec 4, 2015

I obtained a private career training loan from Sallie Mae in the amount of $19,995. It was originated in 2004 and paid off in 2007 by working two jobs.

I obtained a couple of federal Stafford loans (one subsidized and one unsubsidized) that totaled $12,700 in 2009. I had paid these off by 2013 via paying $300+ monthly instead of the minimum $172 payment.

I am currently in grad school and paying the very affordable $230 per credit hour tuition with cash by the semester.

oldsockventriloquist · Dec 4, 2015

You need to look at your income, and budget accordingly.
If you have direct deposit of your checks, open 2 accounts. One of which the total amount of your monthly bills are deposited,(house, car, loans) and have them take it directly out of that account. Any extra in your account to use as you see fit, and for unknowns (utilities, groceries that kind of thing)
When you have that 3rd paycheck in a month, divide it into 3's. Meaning 1/3 goes to the principal of your student loan, 1/3 to the principal of your mortgage (and if you do not have a mortgage up your student loan principal amount) and the other 1/3 stays in the account as a bit of a cushion.
Take $50 a paycheck from your account and put it into savings.
Any unexpected monies if you get a raise that kind of thing take the extra and divide that amount into making principal payments.
Best wishes!

So instead of 1/3 going to mortgage, I'm guessing you could find very cheap rent for less than a third of the yearly salary. What about getting a full-time and part-time nursing position after graduating to increase income? Would that be recommended? Also, I want to hear back from more people on how long it took to pay back your loans. I'm guessing I should not borrow more than $50k, considering that's around the average salary for new graduate BSNs for where I want to work. Maybe I should talk to someone who's good with finance to see which loan payment plan (interest rates, principle...) is the best, as well.

mago8388 · Dec 4, 2015

Tax refunds went to pay off loans and other debt.

oldsockventriloquist · Dec 4, 2015

Tax refunds went to pay off loans and other debt.

Did you have to take out fairly large loans? If so, how long did it take you to pay those back with the refunds?

Not_A_Hat_Person, RN · Dec 4, 2015

I paid off about $15,000 in student loan debt after I got an inheritance. It was a big chunk to pay off at once, but I was glad to have that weight off my shoulder.

oldsockventriloquist · Dec 4, 2015

I paid off about $15,000 in student loan debt after I got an inheritance. It was a big chunk to pay off at once, but I was glad to have that weight off my shoulder.

Compared to the cost of some programs, that does not seem like a whole lot. I know many programs can cost $50k+. I'm curious to see how people have developed plans to pay it off in a short period of time.

verybadkitty · Dec 4, 2015

I took out FAFSA loans and and paid them mostly back while I was in school. I used my tuition reimbursement from my employer plus my yearly income tax refunds to pay off nearly 14000 in loans before I graduated. When I took my NCLEX I only had about $5000 left to pay off. I didn't splurge on anything with my new bigger paychecks so I got that 5000 paid off in less than six months.

Good luck!

allnurses Guide · Dec 4, 2015

Tax refunds went to pay off loans and other debt.

Lucky. We always owe taxes. :facepalm:

I like jadelpn's advice. I try to pay ahead as well. I have about $7,000 left on my RN to BSN.