School Debt Update

Without considering our active payments to George Fox for Sarah's graduate degree, which on a side note means she will graduate the summer of 2016 without any loans, we budget ~$2,100 a month for school debt. Considering our payments to George Fox, we budget ~ $3,100/month. Overall, our goal has been to be completely debt free by November of 2015. This date is significant as I will be 30 and I do not want to be 30 and have college debt!


When accounting for our tax return, bonuses, and expected raises for the year, we are on-pace to have this goal accomplished. However, we are asking the question if it makes sense to continue with our aggressive pay-off plan or to divert cash-flow to other things as our remaining loans are all below 5%. While I am still crunching numbers, qualitatively, we consider the mental victory and finance muscles that we will have when this war is over to be a significant consideration for our family. Quantitatively, once we are debt free, we will have at least $3,100 a month of free cash-flow, enabling significant saving power for other things.


*Additional wins this month include another 3 month reduction of our 24 hour gym membership (cumulative savings of $120 or $40/month for 3 months) through asking for a better rate. I did this before a few months ago and this will be our 2nd set of 3-months at a reduced rate (total 2014 savings of $240/month)
* Travel hacking our way to Hawaii in December via free housing, free rental car, and free flights


Starting Point 1. Federal Loan - $3,500 @ 6.8% - Paid in Full
2. Private Loan Program - 19,800 @ 2.98 - 12,446 remaining
3. Private Loan - $15,321 @ 4.23% - $10,888 remaining
4. Federal Loan - $21,032 @ 0% (deferment for school) - $9,697 remaining
5. Private Loan - $20,686 @ 6.55% - $7,376 remaining

 Total Starting Debt = 80,339

Reductions (Principal)
Principal Paid on Original loans - $39,932 47,883

Current Remaining 
1. Private Loan - 12,297 remaining @ 2.98
2. Private Loan - $10,461 remaining @ 4.23%
3. Federal Loan - $9,697 remaining @ 0% (deferment for school)
5. Private Loan - $7,376 remaining @ 6.55%

Total Remaining from Original = $32,456