A couple of days ago while I was reviewing my class schedule for this semester, it suddenly dawned on me that my college education will have to be paid for someday. Student debt is not something I want to carry with me throughout life. I wasn’t one of the lucky ones who received scholarships (I was too lazy to apply for them), and I’ll be the one responsible for paying those loans off.
How will I possibly pay off $50,000 of debt in a couple of years?
Well, my plan is as follows:
- Get a job in my field immediately after (or before) graduating.
- Find a side hustle that will generate supplemental income
- The possibilities with this are endless. It all depends on what I’m interested in at the time and where I’ll be living. I might drive for Uber on the weekends. Maybe I’ll do wedding videography, or perhaps I’ll craft wooden bicycles? Regardless of what I do, that extra income will be essential for me to afford a somewhat decent lifestyle while paying off my debt.
- Live in a low-cost-of-living area
- Thankfully I already do, but I’ll still look around to see my other options.
- Use most of my income to pay off debt.
- This is by far the most challenging one, but I’m already implementing budgeting techniques even though I hardly make any money right now as a college student, and I don’t see this being an issue.
Does this mean I’ll be living off rice and beans and sacrificing my social life for a while?
But what’s the alternative? Let’s look at the side-by-side comparison:
So if I chose to neglect my student debt by only paying the minimum each month for 25 years, I’d end up paying $36,000 more! Not only that, but that debt would hover over me for an additional 23 years. At least after the 2 years of extreme frugality is done, I can begin to build my net worth. Otherwise, I’d have to wait 25 years.
I don’t know about you, but I’ll take a couple of years of sacrifice over an entire lifetime of worry and financial stress, any day of the week.
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