Personal Finance

Guy pays off $26500 student loan in less than 2 years

  • Last Updated:
  • Nov 24th, 2013 12:32 pm
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Jr. Member
Mar 18, 2007
125 posts
2 upvotes
xg3 wrote:
Jan 14th, 2013 1:08 pm
So true... OSAP is the last thing you ever want to pay off...
1. Interest is tax deductable.
No, it's not. It's a tax credit, not a deduction, and there's a big difference.
Member
User avatar
Apr 22, 2011
432 posts
39 upvotes
I paid off my similar student dept loan (think i had roughly $28,000) in a year and a half. Best part was getting a letter in the mail saying congratulations your student loan is fully paid for. I quickly went to the dollar store and bought a frame for it.

That being said I was originally going to pay it off in roughly 3-4 years, but my living cost where small and I had made a lot of back pay from my job. I also started my new job roughly 5-6 months after finishing school with start pay of around $50k so that helped a lot.
Warning: Anything I write is to the best of my knowledge, I may be wrong about things, I may have a different thought on things than yourself and I do not always follow the herd. I am also a RFD personal finance addict.
Banned
Jan 11, 2004
19816 posts
560 upvotes
Doesn't seem like good money management to me.

Suffering like that to repay debt for what? No sense of how to balance priorities and a unsubstantiated fixation on reducing debt at the cost of other priorities. It's about balancing and managing debt while servicing other needs as well.
Deal Addict
Aug 28, 2010
1038 posts
199 upvotes
Toronto
gilboman wrote:
Jan 15th, 2013 8:53 am
Doesn't seem like good money management to me.

Suffering like that to repay debt for what? No sense of how to balance priorities and a unsubstantiated fixation on reducing debt at the cost of other priorities. It's about balancing and managing debt while servicing other needs as well.
Agreed, with an acceptable balance there is no reason why one would not pay off OSAP or any other debt as priority.
Deal Addict
Aug 28, 2010
1038 posts
199 upvotes
Toronto
Syne wrote:
Jan 13th, 2013 5:42 pm
Or you pay off your debts and start investing for the future and get hit by a train and die.
Many people have this belief and dont get hit by a train.

The others get hit by a train and their spouse and kids get the money. I dont see a con here unless your life is ***** because your taking it to the extreme and being a cheap ***** . If you feel your life will not be lived to the fullest because you are paying off debt, wait till your in so much debt you feel like you need to work in order to live.

I keep forgetting I have a car loan I gotta pay off, so Im not debt free anymore. But Im sticking to my guns and paying large sums each month. I calculated if I tripled my monthly payments on an open finance I would save over $1000 of interest. Free trip to DR w00t
Deal Expert
User avatar
Oct 26, 2003
29632 posts
2298 upvotes
Winnipeg
porchemasi wrote:
Jan 15th, 2013 10:48 am
Many people have this belief and dont get hit by a train.

The others get hit by a train and their spouse and kids get the money. I dont see a con here unless your life is ***** because your taking it to the extreme and being a cheap ***** . If you feel your life will not be lived to the fullest because you are paying off debt, wait till your in so much debt you feel like you need to work in order to live.

I keep forgetting I have a car loan I gotta pay off, so Im not debt free anymore. But Im sticking to my guns and paying large sums each month. I calculated if I tripled my monthly payments on an open finance I would save over $1000 of interest. Free trip to DR w00t
syne is hoping to get hit by a train so his debt can go away.
Deal Fanatic
Apr 16, 2007
7054 posts
1951 upvotes
Financial District B…
divx wrote:
Jan 15th, 2013 12:16 pm
syne is hoping to get hit by a train so his debt can go away.
LOL now that's comedy!

The true facts are he wishes he had debt. His credit is so bad no one will lend to him.
I bet he'd even get declined for a paper route delivery
Deal Guru
User avatar
Dec 7, 2009
13788 posts
1301 upvotes
porchemasi wrote:
Jan 15th, 2013 10:48 am
Many people have this belief and dont get hit by a train.
Many things can happen that negatively affect your quality of life to the point where money loses its relative value to make you happy. Also, lots of people don't have a spouse or kids. I don't see why some one-size-fits-all philosophy of slaving away during youth to one day become a snowbird in Florida is so appealing. I think it sounds awful.
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Member
Aug 26, 2009
200 posts
23 upvotes
Syne wrote:
Jan 15th, 2013 6:51 pm
I don't see why some one-size-fits-all philosophy of slaving away during youth to one day become a snowbird in Florida is so appealing. I think it sounds awful.
Right because when youre old and fragile, youre going to stay indoors when its winter 6+ months of the year instead of enjoying the outdoors in sunny warm weather? Oh wait, it sounds awful.
Deal Fanatic
Oct 7, 2010
8340 posts
914 upvotes
divx wrote:
Jan 15th, 2013 12:16 pm
syne is hoping to get hit by a train so his debt can go away.
Nice one divx, your comment is so funny. :D
Member
Sep 21, 2007
323 posts
32 upvotes
Paying off 26k in 2 years is hardly newsworthy.
Member
Jan 25, 2012
257 posts
13 upvotes
ETOBICOKE
I hate when I hear about students unable to pay their loans off while living with their parents. People are crazy. Cut down the personal expenses and focus on the school loans!

Some of these are Finance majors too, like c'mon.. we learn in class the danger that comes along with delaying these interest-accumulating payments.
Newbie
Aug 31, 2013
23 posts
3 upvotes
Hellfire wrote:
Jan 13th, 2013 3:57 pm
Not impressed at all:


Didn't need to have cable or netflix... replace with library card
Cell phone bill that high?... replace with pay as you go cell phone and limit self to $10 a month
Few miles from office... replace with bus pass, get rid of car, save on insurance too.
didnt need to have library card... replace with imagination
Pay as you go $10 too high? replace with 50 cents payphone call/month.
$90 bus pass... replace with running to work

total cost: 50cents/month
Member
Jul 22, 2006
230 posts
4 upvotes
Surrey
Given the tax deductibility of student loans, I don't see why some people are so so urgent to pay them off. I paid off my student loans back in May (9 years?) and it was great. But along the way, I bought a condo, a new car and travelled. I am much more aggressive with my mortgage (well, I still have that) and car loan (no more!).

Certainly, there are worse ways to use your money than pay down debt. But there are also better things to do with your money as well.
Deal Fanatic
User avatar
Mar 12, 2005
8384 posts
1103 upvotes
Victoria
I owed 27k when I graduated. I got a few grand in graduation gifts and paid it down to 25000. Then I couldn't find work for about a year and a half and kept applying for interest relief. I ended up moving to get a job that pay 18/hour plus bonuses (but kept going up through the years. I had to start making my first payments in Dec 06 and had it paid off by July 09. Just over 2.5 years for 25k.. (assuming you don't count the years where i froze them.. then its closer to 4.5). As soon as I started working I kept paying them down. Any bonuses when straight into the loans.

I guess I didn't like the idea of being in debt. When I graduated it felt like I'd never get back into the black. Other than a mortgage I'm not big on carrying debt.

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