I Paid Off My Student Loans. What Was the Journey Like?

The Plan to Pay Off Loans

College is expensive and is leaving many in debt with student loans. In the spring of 2017, I too graduated GCU with over $20,000 in student loans. Being an Education major, it would be a bit harder to pay it off as I would be making money as a teacher. In fact, I would end up owing Sallie Mae 3 different payments per month and one payment per month for Nelnet. It would certainly be hard to live anywhere else that wasn’t at home in Morenci. Living at home was definitely the best option.

With that plan in motion, I ended up getting hired to teach in a nearby rural district Most of my paychecks would be going towards my student loans. It was estimated that I would have my loans paid off within a year and a half. After that, I would be financially fine to move away from home. The plan was in full gear and seemed to be working.

Change of Plans

Everything changed one cold day in November. Being a new 1st-year teacher isn’t easy and requires a lot of learning and growing. Instead of learning and growing as a new teacher, I got let go. It would be impossible to get loans paid off now. Thankfully, I was able to immediately sub in the Morenci District. While it wasn’t much money, it would help with my loans.

During that same school year, God opened up a new door. I got hired as an aid and started getting steady paychecks again. These consistent paychecks were surely good for my loans. This was also a good opportunity to get my foot in the door. God certainly knew what He was doing. Once the summer arrived, I wasn’t sure if I would still have my job in the fall. And as going on vacation is never a good idea while in debt, I traveled to Austin, Texas.

Less

With the 2018/19 school year kicking in, I was hired again as an aid with my responsibilities looking differently. A bold move was made at the start of the school year. With the majority of the money left in my bank account, I paid off the rest of my Sallie Mae Loans with one big payment. With little money left in my bank account, all I had to worry about was Nelnet. I rewarded myself with Blue Bell Ice Cream.

No longer was I focused on 4 payments per month. It was now only 1 payment towards Nelnet per month. With that, more money could go towards those monthly payments. With only 1 payment, it was safe to start thinking of other places to work and live. Yet, I was starting to get a little comfortable living at home. What would happen?

Leaving Home

I ended up moving back to Glendale, AZ for the 2019/20 school year. I was hired to teach 6th grade. The big city is a bit pricey when it comes to the cost of living. Would I be able to afford it with my salary, rent, and Nelnet still looming over my head? I couldn’t really make a big payment like I did with Sallie Mae. The bare minimum would have to be paid each month. I would barely be making ends meet each month. God blessed me with an affordable studio apartment.

My 6th-grade position was overwhelming and severely impacted my mental health. I ended up quitting after a month. Within a short time, I found myself subbing in the Glendale District. At that point, I was close to living paycheck to paycheck. I began to wonder if my loans would ever get paid off. This question deepened with the arrival of COVID.

COVID’s Plan

Subbing was no more with the pandemic. There were now two options. Find another job or move back home. I got a job at CVS and the schedule was unstable and inconsistent. Leaving CVS, I got into security at Amazon. Student loan payments were also put on pause during the pandemic. It was sweet not having to pay anything off. It also kind of sucked.

The BM40 Plan

Things changed in May of 2021 when I started listening to Dave Ramsey as he talked a lot about finances and debt. At this point, something had to be done. A plan was born. With the overtime earnings I was getting at Amazon, The “BM40” Plan was born. That’s the bare minimum payment plus 40% of any overtime earnings I make that month. The plan was working. By November, I had $10,000 left. It was an amazing feeling. This was possible. My debt could be paid off!

The Ratio Plan

With BM40 in full swing, another new plan was born. The “Ratio” Plan. The moment the ratio from my bank account to my loan hit 4:1, the rest of it would get paid off hopefully by October of 2022. This was such a big blessing. I was excited! I had to work as much overtime as possible and burn myself out in the process.

God’s Plan

In January 2022, some shocking news was received. Allied (the security company that I was under) and Amazon were parting ways by March. The future became unclear. Would I still be at Amazon? Would I still have a job? Could my student loans still be paid off by October? Unclear. It was scary and I really needed to trust God.

In March, I stayed with Allied and was stationed at Cigna. While overtime was scarce, I received a $2,000 bonus for staying with Allied. The bonus came in monthly installments. All the bonus money went towards my loans. I was on track to get my loans paid off by December now. Ratio was looking good.

The Government’s Plan

Towards the end of the year, student loan forgiveness was announced by the government. After all my hard work, I had mixed feelings about it, but still applied. Was it possible that I was being rewarded for all my hard work? I didn’t deserve this. Was this grace? And while all I wanted to do was pay it off, The Supreme Court had to make a decision if this was okay. I had to wait while not paying anything. Waiting was hard.

End Goal

The Supreme Court made its decision at the end of June. Student loan forgiveness wouldn’t be happening. While this was bad news for many, this was great news for me. By this point, the ratio was 10:1. Like Sallie Mae, I could pay this off with one big payment. On July 4th, I celebrated my freedom by declaring independence from debt. My loan was paid off!

Looking at the Last 6 Years

These last 6 years have been a journey. Who knew paying off student loans would be a process? Who knew teaching wouldn’t work out? Nevertheless, God provided a way to pay off these loans. He provided a way to grow and be smarter about such things as finances. It was hard work, but being in debt is harder.

In these 6 years, I feel like I’ve learned a lot. I’ve considered a lot of things. Was teaching the best route? Could I still make the profession work? Should I have never left film school in the 1st place? It’s hard to know these answers. In reality, it’s best to move forward with what knowledge is in front of me.

Life is Hard

Life is full of hard choices. Our futures are important to consider. Are you thinking of college? Is college necessary for what you want to do? Is there another way to achieve your dream without debt? God only knows. As you read this, I hope and pray you think of your dreams. What are the ways you can achieve them? It may be hard, but doing nothing and living in misery is harder.

What’s Next?

What’s next for me? I’m a pretty creative guy. During the pandemic, I did gain interest in marketing and learned about copywriting. This past November, I got my certificate in Digital Marketing. How that’s working out? I still have much learning and growing to do in this area and every area of life. It’s a hard journey. Perhaps a lifetime journey. Do we ever truly reach of destination?

In Conclusion

What’s it going to be? What are you going to do? Something? Nothing? It’ll be hard. Either way, trust God and let Him guide you. Choose your hard!