How I paid off $34,579 in student loans in under 4 years

Wow, this feels good to say: after years of hard work and sacrifice, I am now officially debt free. So long, student loans. Good-bye Debt Monster ūüôā

How can someone with an average salary after college tackle tens of thousands of dollars in debt and pay off student loans in just a few short years? Here’s how I pulled it off:


Below all the superhero¬†strategies I used to pay off my massive debt in a short period of time. Some of these tips may work for you; others may not. But even if you decide to only try a few of these tactics, I guarantee you’ll be one step closer to financial¬†freedom and living an amazing debt-free life.

Here’s how I paid off student loans – all $34,579 of them – in under four years:

how i paid off student loans


When I got my first “real” paycheck, I thought I had it made. As soon as I started earning decent money after college, I realized just how quickly my take-home pay disappeared. I honestly thought that I would be able to pay off all of my student loans in a year on a $48,000 salary… HA.

I made pretty good progress on my debt my first year out of school, paying back almost $7,000 in 12 months. But I knew that I had to boost my earnings if I wanted to quickly dig myself out of this debt hole. And that meant finding ways to earn more money on the side.

I knew that I wanted to earn extra money, but I also knew I wanted to keep growing my career and getting new skills. I started reaching out to companies, start-ups and websites that I thought were doing interesting work, and then I offered to work for them for free. Why free? I wanted the experience and I made sure that we agreed to revisit our work together after a month or two to see if we could turn it into paid work. After launching my blog, I also began freelance writing for other personal finance websites.

I’m not going to lie: working on the side is tough. More than a few of my weekends were spent hunkered over my laptop and I had a few deadlines that kept me up very late at night. But every extra dollar I earned helped me tackle my student loans. Not only did I have a few hundred dollars extra each month that I could use toward my debt, but¬†I was also building awesome experience that I later used to leave my job.

Step 2. Negotiate: I negotiated my salaries TO PAY OFF STUDENT LOANS FASTER

This is hands-down the most overlooked but most effective strategy when it comes to finding extra money to pay off debt. I always ask for more: a raise at work, a higher starting salary at a new job, and even fees on my credit card. Of course, I also spend hours researching and preparing my request with facts and figures. But more importantly, I went into these conversations with confidence. With just a few hours of research and some rehearsal in front of the bathroom mirror, I was able to get a significant raise at my previous job, negotiate my starting salary at my new job, and waive late charges, fines and annual fees from my credit cards and bank accounts.

How much did I earn just by asking over the last 4 years?

I earned $13,000 in bonuses and salary adjustments by negotiating.

That is not an exaggeration. And this doesn’t even include the few hundred dollars I’ve saved in credit card and bank account fees. Can you imagine what you could do to your debt if you had an extra $13K? That’s a good feeling ūüôā

LenderRates (APR)Loan TypesTermsEligible DegreesEligible LoansMore Info
2.47% - 7.80%Variable & Fixed5, 7, 10, 15, 20Undergrad & GraduatePrivate & FederalVisit SoFi
2.47% - 6.32%Variable & Fixed5 to 20Undergrad & GraduatePrivate & FederalVisit Earnest
2.47% - 8.72%Variable & Fixed5, 7, 10, 15, 20Undergrad & GraduatePrivate & FederalVisit Lendkey
2.80% - 7.02%Variable & Fixed5, 7, 10, 15, 20Undergrad & GraduatePrivate & FederalVisit Laurel Road
2.48% - 6.25%Variable & Fixed5, 7, 10, 15, 20Undergrad & GraduatePrivate & FederalVisit CommonBond
2.57% - 8.69%Variable & Fixed5, 10, 15, 20Undergrad & GraduatePrivate & FederalVisit Citizens


The biggest mistake I made out of college? I used my checking account balance as my budget. If I had $1,000 in my account, I felt like I had $1,000 left to spend. So before I started getting used to my fat paycheck, I mapped out my fixed expenses and student loan repayments with a quick, back-of-the-envelope budget. That gave me a better sense of what I could spend Рand what I needed to do to accelerate my debt payments.

The other big win was setting up automatic transfers from¬†checking account to¬†my¬†student loan lender. I didn’t have to think twice about the money that was¬†being automatically taken out. And that gave me more incentive to pay¬†more than the minimum when I could afford it so I could reduce my debt¬†quickly.

I also made sure I had a plan for how I would spend any extra money that came my way. If I got a raise at work, earned extra money on the side or got a tax refund, I made sure to allocate that extra money before it hit my account. My rule of thumb for extra cash that came my way: Student loans: 50%, Long-term savings: 25%, Whatever I wanted: 25%.


I knew if I wanted¬†to tackle tens of thousands in debt in a few short years, paying off¬†my¬†student loans had to become one of my¬†top 3 financial priorities – and that meant ruthlessly cutting down on the things that didn’t matter.

For the last four years, I had a clear list of priorities: paying off debt, buying healthy food and travelling to the West Coast every few months. Everything else was slashed. I stopped buying lunch at work (I think I’ve bought lunch maybe 10 times in four years!). I tried not to spend more than $50 a month on new clothes. And I only bought one new book a year (even though I love to read, I always went to the library instead). With my priorities set, I did my best to scrimp and save everywhere else.

Just as important as prioritizing debt was prioritizing my savings. Even just $1,000 in my rainy day fund gave me some piece of mind that I could handle a true emergency if it came up. So even though I was insanely focused on paying down my loans, I knew I still had to put some money away in savings.


Psychologically, this was my most important step. The biggest motivation for me came from publicly declaring my debt goal online. After posting a YouTube video about my debt story, I got comment after comment asking how I was doing and if I was debt free yet. I felt accountable to reach my goal, even to complete strangers! And after launching The Empowered Dollar, I began to build an awesome support system of fellow indebted bloggers, fans and friends who cheered me along my journey.

So if you want to turn your finances around, find a way to declare your intentions and announce it to the world. Tell your family, friends and dog that you’re going to tackle your debt once and for all and you need their help staying accountable.

It also helped me to set a timeline. By announcing in March that I was going to pay off all of my debt by the end of the year, I knew I had to get an aggressive jump start on my payments.


I used a lot of muscle and hustle to pay off my student loans… but it never occurred to me to look into refinancing my debt.

I get a lot of questions about refinancing student loans (is it worth it? what are the risks? is it too good to be true?).¬†Luckily for me, my interest rates were pretty low and I paid off that debt pretty quickly. But the more I research the refinance options that are out on the market, the more I realize that I could’ve saved a nice chunk of change¬†if I had decided to refinance my student loans.

Well, it’s too late for me to refinance. But not for you¬†ūüôā


It’s a hard pill to swallow when you realize that most of your student loan¬†payments are going towards you¬†interest rates. That’s why refinancing is so appealing – it’s a chance to¬†lower your interest rate, lower your monthly payment and finally win the battle against ever-accruing interest. But like every financial decision, there are both¬†pros and cons to refinancing your student loans:

  • Cons: you may lose¬†some federal protections if you refinance your¬†student¬†loans, including the federal loan forgiveness program.¬†If you hit a patch of unemployment,¬†you won’t be able to claim financial hardship with the federal government like you could have¬†before¬†refinancing.
  • Pros: If your income situation is pretty stable and you’re losing lots of money to¬†high interest rates, refinancing may be right for you.¬†Refinancing your debt¬†will help lower your monthly payment and make sure your hard-earned money is going towards paying down the principal, not interest. Combine that with some good money management habits like the steps above and¬†you could¬†be debt free ASAP.


So if you think student loan refinancing feels right for you, the good news is there are lots of options on the market to make that happen. One of the easiest ways is to¬†shop online (because you can buy¬†anything online now – even a new loan ūüôā ).

My personal favorite option is SoFi. SoFi offers variable rates as low as 2.79% and fixed rates as low as 3.35%. And according to their website, their members save an average of $14,000 when they refinance. They also have a great-looking, easy-to-use interface (which is more than you can say for other loan websites).

How to refinance your student loans

I’m a big fan of SoFi. I’ve watched¬†them grow so much over the last few years from serving just grad students¬†to opening up their doors to thousands of undergrads struggling to pay off their debt. I’ve also gotten a chance to meet the founder and the SoFi team; you can tell they’re genuinely interested in helping as many people as possible¬†lower their student debt payments.


Paying back student loans is a lot of work. And I worked it at all angles:¬†I¬†worked on my budget, worked on the side and worked extra hard to bump up my salary. But even though it took a lot of work, it’s¬†quite literally the most worthwhile thing I’ve ever¬†done. Because once I was able to buy back my freedom, a world of opportunity opened up for me. And I developed some life-long money habits that have changed my life forever.

Interested in refinancing your student loans?

Here are the top 6 lenders of 2018!
LenderRates (APR)Eligible DegreesMore Info
2.47% - 7.80%Undergrad & GraduateVisit Sofi
2.47% - 6.32%Undergrad & GraduateVisit Earnest
2.47% - 8.72%Undergrad & GraduateVisit Lendkey
2.80% - 7.02%Undergrad & GraduateVisit Laurel Road
2.48% - 6.25%Undergrad & GraduateVisit Commonbond
2.57% - 8.69%1Undergrad & GraduateVisit Citizens

37 thoughts on “How I paid off $34,579 in student loans in under 4 years

  1. Sara Carbaugh

    You are such an inspiration and I wish I could give you a BIG hug!
    I would love to know more about your Allocation and Prioritization because that is where I seem to fail miserably. Having all the adult thing to worry about now (kid, house, pets, cars, groceries, etc) I have a really hard time knowing how much money I have to work with and what is already spent (if that makes sense).

    1. Stephanie Halligan Post author

      Thanks Sara! ūüôā I think a few things come to mind: 1) Prioritization is tough when you have a lot of “needs” like kids and a house. If you feel like you really can’t cut back, you should focus on the other side of the equation (Hustle and Negotiate. 2) All the things you listed are fixed expenses and needs. But is there a way to modify any of it? Can you sublet a room in your house or refinance the mortgage? Can you trade in one car if you don’t need two? Are you making your meals efficient and in-bulk when you cook at home?

      There’s lots of ways to find money and everyone’s life is so different – it’s all about figuring out what’s absolutely essential, questioning the norms, and sometimes asking for more ūüôā

  2. Sarah L

    I have not had the good spending skills or fortune to be debt free or get myself out of debt. Made poor choices of schools and lack of savings, and entered a low-paying field, grr. lol, but I WILL get out of debt one day, and when I find a higher-paying job, I will be on the road ūüėČ

  3. Jena Z

    Great article! I personally saved myself over $5700 by dual enrolling and getting my A.A. paid for free! Now I just have to focus on getting through 2 more years!

  4. Beth Anne

    I’m still trying to get that awesome post-college job. These are tough times! But man you and all these finance bloggers are my inspiration to live within my means vs the bloggers that say we shouldn’t have gone to college/gotten the debt to begin with…well maybe that is true but I can’t change the past!

    Your #3 used to be what I did but I’ve recently recategorized and bought budgeting software so that I don’t even look at my checking account but at my budget categories. It works much better.

  5. Dear Debt

    Wow, this is so inspiring! Congrats on finally being debt free. I can’t wait for that day. I still have roughly 45k to go, but have also paid off 34k or so. Congrats on being awarded a Plutus!

  6. Luke

    I also just finished paying my student loans off just this week, 40k in 2 years. What helped me and what I connect with in this story is the announcing it to the world theme. I would share my story, my plan, and my progress with coworkers and friends in the same situation. In the process I refined my payoff regime and developed a system that worked for me. Another skill that helped was goal setting. I set realistic attainable goals (SMART goals) of where I wanted to be at what time and then I focused on beating them to the point where it was a personal competition.

  7. Ryan Hart

    Negotiating is definitely one of the most overlooked strategies when it comes to paying off debt. As you mentioned, Ramit is the go to resource for negotiation if anyone wants to follow in your footsteps. Congrats on your success!

  8. Chas

    I just want to thank Sean Ogle through you for interviewing you(I am subscribed to his newsletter). I so needed to hear your story and find your blog. After deferment upon deferment, I am faced with the struggle of paying-off my student loan debt, besides other financial obligations and living expenses. I look forward to delving into ‘The Empowered Dollar’ and learning more from you. Thank you so much for being here. I have ran across your blog at just the right moment for me.

    1. Stephanie Halligan Post author

      Chas, I’m so glad you’re here and you found me! I hope you find my journey helpful. Please let me know if you have any specific questions.

  9. Ms. Debt Emergency

    Hi Stephanie!

    Your blog is such an inspiration for me! I have $175k in student loan debt and have decided that 2014 is the year of eliminating debt. I have started a blog to track my progress publicly. Feel free to check it out and share with others, if you feel it’s worthy.

    Congrats on paying off your debt – that is such a huge accomplishment and you are more free to do what you want. I’m so happy for you! ūüôā

  10. M. L.

    Yeah… I’m not fortunate enough to have a salaried job (let alone be earning as much as you were straight out of school). I earn $18,000 a year working retail because I majored in an undesirable field, making it hard to find a salaried job, or a job with good pay for that matter that will consider me.

    I feel defeated! I have no clue how to keep from drowning in this debt!

    1. Stephanie Halligan Post author

      Hi ML – Sorry to hear you’re having a tough time. Have you tried starting something on the side? That really helped me explore my talents, build up my resume and earn extra money.

  11. Jamie

    Great article! My hubby and I are working out way out of a 300k student loan monster pile. (6 months down, about 280 left), Right now we put his entire salary towards that as well as a little bit of mine- even at that rate it will still take almost 10 years! What stinks about having that much debt is that so much interest accrues every day! One day at a time I guess- I think we should look into extra things we can do for income. Also, I like your 50:25:25 rule for what to do with bonuses and tax refunds! I think having an extra bit to spend personally helps psychologically to feel like you aren’t totally limited your self, and helps to stick with the program.

  12. Joe Kazan

    Sounds good!!! Great post. I have read your whole article. I want to congrats you. In this, I like the Step 4 “Prioritize”. Keep blogging.

    Thanks for sharing this article.

  13. Pingback: Should You Lower Your Student Loan Payments? Here's How to Decide | Refinance and Consolidate Your Student Loans | Student Loan Hero

  14. Jade86

    Please tell us why you couldn’t pay back more then 7,000 in 12 months in your first year. Did, you spend 3.4k (approx only 580 going towards loans each month) a month on rent, groceries, etc? The details helps a lot, especially if I’m not aware of some expenses I need to be including. I am fortunate enough not to have to pay towards the mortgage, since I moved in with my husband after he bought a home he could comfortably pay for each month. I know that is a privilege, but I intend to pull my weight too. Since I only have a few small bills to take care of each month, with the major one being my health insurance, hypothetically with your salary of 4k per month, I could pay back as much as 2k, or more each month.

  15. Morgan

    I’m not even finished with school yet and I’m already stressing about this! It was so nice to read this and know I will be able to make it!!


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