"I always knew I would go to college and wasn’t ever concerned about paying for it. I honestly don’t even remember how much my tuition was—because it simply was what it was. People went to college every day. I, and my now-husband, would just take out student loans. That’s what everyone did, right? So, we did, too. And in 2009, we both graduated with bachelor’s degrees.
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Over the next several years, we got married, moved to North Carolina, and started our corporate careers. I even got my MS in Human Resources while working full-time. But, before we knew it, our student loan debt had ballooned to over $200,000 and a $2,100 monthly payment. Suddenly, I wasn’t so sure my earlier “that’s what everyone does!” mentality was so true. Even still, I couldn’t get over the injustice of it. We had great, high-paying jobs that we couldn’t have gotten without our degrees, but at what cost?
$2,100 a month is too much for anyone, but we also had a mortgage, other bills, and a desire to live a full life. Needless to say, we had to do something. So, here’s the extreme move we made to pay off our student loans. I’m not going to lie—it was hard and required a ton of work and sacrifice, but we did it in just three years.
The extreme decision we made to pay off our student loans
I felt deeply ashamed and embarrassed at how high our student loans were and that we would be in our mid-50s before we could pay them off. The weight of the situation reinforced my personal narrative, whether true or not, that I was poor with numbers and money. It took me right back to third grade when I failed to recite the seven times tables in front of the whole class. I couldn’t wrap my head around how bad our student loans had gotten.
“I felt deeply ashamed and embarrassed at how high our student loans were and that we would be in our mid-50s before we could pay them off.”
We had been able to put 5 percent down on a starter home in 2013, and in February 2017, my husband ran the latest numbers on our debt in preparation for tax season. He realized if we sold the house we renovated, put the profit on our student loans, rented a small apartment, and attacked the remaining student loans with all our focus, we could have them paid off in four years. I was faced with a decision: give up the home we loved and made our own or continue to live beneath the shroud of our astronomical debt. Ultimately, the lure of paying off our loans in just four short years and then getting back to the life we wanted was too strong to pass by.
Our real estate agent put the house on the market three weeks later, and it sold that very first day. From the proceeds of that sale, we were able to immediately put $100,000 towards our student loans. This decision was the big dent we needed to build momentum to pay off the rest in just a few years.
Obviously, we were fortunate enough to be able to sell our home for a profit, but the reality is not everyone is in the position of owning a home in the first place—especially given the current housing market. While this worked for us, and we were lucky to have this option, just know that whenever it comes to handling debt, it won’t come without major sacrifices and lifestyle changes. We didn’t want to sell our home—we had renovated it ourselves. I scraped the popcorn ceilings and repainted every square inch myself. We spent every night and weekend making it our own. But in order to have the life we wanted long-term, we had to give it up.
For others, this major sacrifice could look like moving in with parents or other family members or getting a roommate, seriously cutting back on dining out, selling your car and taking public transportation, or even taking a second job or starting a side hustle and only using that money earned on your loans.
“We didn’t want to sell our home—we had renovated it ourselves. I scraped the popcorn ceilings and repainted every square inch myself. We spent every night and weekend making it our own. But in order to have the life we wanted long-term, we had to give it up.”
How downsizing helped us pay off our student loans in 3 years
Downsizing and renting a one-bedroom one-bathroom apartment certainly cut down on our housing costs, but it felt like a giant step back in our adulthood. I grieved what the house itself represented. That we had “made it.” We did what millennials were told. Go to college, get good grades, get a good job, buy a house, and live happily ever after. What they didn’t mention was that it all came with a large monthly payment.
As you can imagine, seeing all of our hard work and life reduced to 700 square feet was heartbreaking. To fit into a small apartment, we had to sell the majority of our possessions. Including the antique 1960s bedroom set my husband’s grandmother had gifted us for our wedding. After selling our home, seeing this go was another punch to the gut. However, it was simply too big to take with us, and with my father-in-law’s assurance that Gram would be proud of what we were doing, we let it go and focused on how much good this move would do for us.
By not having the costs of owning a home and smaller utility bills, we were able to redirect an additional $1,500 to our student loans each month. Which, in addition to the initial lump sum we paid, made a huge difference. Soon, we saw loan after loan get paid off, and we stayed committed to the plan.
The money saved from the move played a huge role in paying off our student loans, but we also had to make several lifestyle changes to make a serious dent.
The other steps we took to pay off our student loans
Using a combination of the waterfall method, work bonuses, and employee stock programs, we paid $3,600 towards our loans each month. Apart from the $1,500 we saved monthly from downsizing, there were other lifestyle changes we had to make. We opted for Saturday morning coffee dates instead of expensive dinners out. We packed lunches and diligently planned our meals to cut down on food waste. If we wanted to travel, we used only credit card points. I cut lifestyle costs wherever I could—I stopped going to the salon and taught myself how to do at-home manicures. At the end of the work week, we would hold Friday Night Family Financial Reviews, where we went over that week’s spending to stay focused on our end goal. We said “no” to a lot of plans. Our day-to-day lifestyle changed drastically, but before we knew it, three years had actually flown by and our loans were paid off. Then, we shifted our focus back to the life we wanted: owning a home of our own and a lot less shame over our debt.
“There is not one right way to pay off debt. The important thing is to align your approach with your life vision and goals and then continue to take meaningful steps forward.”
What we learned from going all-in on paying off our student loans
I acknowledge we had a lot of privilege in owning a home we could sell and downsize in order to pay off our student loans so quickly. We also had high-paying corporate jobs and didn’t have children, health issues, or any other debt to consider. There is not one right way to pay off debt. The important thing is to align your approach with your life vision and goals and then continue to take meaningful steps forward.
After paying off our student loans and moving into our new home, I quit my corporate job and built my own coaching and consulting business. I could have never done that if we still had six figures of student loan debt. I still paint my own nails because I prefer it, and my husband still insists on DIYing any work around the house. With this experience behind us, I no longer feel that intense shame and can now focus on the future and the financial goals that will help us live the life we want without student loans looming over us.