The Biden Administration just announced that the pause on student loan payments and 0% interest would be extended until either the lawsuits against the forgiveness plan are resolved +60 days, or until September 30th, 2023.
When I was reading through the email, I felt a bit of relief knowing that I wouldn't have to begin fronting a few hundred dollars extra per month beginning in January. But mostly, I just felt... 'eh.'
In thinking about my loans and payments again, I put a whole $20 towards my loans!
Current balance: $85,980
I put this towards my highest balance/interest account.
Just a tiny drop
in the bucket, but one that won't incur interest in the future.
In thinking about repaying my loans, I don't mind paying back what I owed. What makes them daunting is the interest. Ah, what a beast it is to understand that what you pay is not paying down the principle, but the interest.
The only other loan that I have is for my car, which was a splurge when I started my current job. I love my car, and am happy to pay down this loan. My daily interest accrual has gone from almost $3.50 per day to $2.96 per day. These metrics, instead of overall amount due, are ones that I take as personal challenges to reduce. Getting this daily interest below $3.00 was a huge payoff goal. Next I'm working to get it to $2.50 per day. Ideally —though unlikely— I'll get my car loan paid down by half before student loan payments start up again. I plan putting part of my year-end bonus towards paying off my car loan. I don't know how much to expect, but that is what I have earmarked so far.
Going forward I'm going to be throwing money towards my car payments, with a spare $20 here and there towards my student loans.
Cheers to all of you working hard to pay down your debts!! Keep up the great work!
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