Debt #2

In paying off a debt, there comes a point where the interest owed is just about nothing, and then you know you’ve nearly paid the whole thing off. We’ve come to that point:

This is my husband’s remaining student loan debt. There’s $6.89 of interest on this sucker. Thanks to September being a five paycheck month for us with five Fridays, this thing is going to be all gone on September 30.

I have enjoyed making payments every week on this debt instead of just one monthly lump payment. It does help my motivation more to login to Mint.com and see it dropping week by week instead of just month by month. This takes some closer attention to the budgeting, but I think it’s worth it to see this:

Probably the exact same amount of money gets paid toward interest doing it this way, but it feels more like hacking your way through a dense jungle using a machete, each chop of the blade satisfying a need to make it through vs. using a bulldozer and just running everything down with one little crank of an ignition switch. Or maybe that’s just me.

Yet another reason to pay off those student loans

With the new debt ceiling law, some benefits related to student loans are going to go away. No more subsidized loans for graduate programs, and depending on some other factors, interest rate incentives could also go away or not be offered at all.

I always tell people to think long and hard and literally do the math before applying to graduate school. For some degrees, it just doesn’t make sense to go into debt for a job you may never get. I was very fortunate to find a job in my field so quickly after graduation, but unless you’re getting a professional or technical graduate degree, it could just be a lot of time and a lot of money with little to show for it.