Last student loan payment scheduled

I just scheduled my last student loan payment.  I’m cheating a bit by scheduling it on May 30, when technically the payment isn’t in the budget until June, but whatever.  The money will be in our account on May 29 to be used for June, and the processor probably won’t take the money out of our bank account until June anyway.   I’m a bit over-excited about the prospect because that means that all of our non-mortgage, non-0% interest rate debt will be GONE!  The car loan remains at 0% interest, and the mortgage remains at 4.125%

3 years of trying to get out of debt will be “over”:  from owing a high of just under $100,000 in debt to $17,600 (what’s left on the car).  Or progress will “slow down” as we focus less on paying off the car, and more on building up our long-term emergency fund.  I’m excited and nervous at the same time.  We’ve been paying off debt with an almost laser focus for 3 years, and now we’re moving on to the next “baby step“.  It’s a pretty big change in our lives really.  I’m hoping that we can transfer that laser focus to saving up our large emergency fund next.

We’ll be maxing out our retirement accounts, giving us a “new” income to work with, so I don’t think we’ll build our emergency fund as quickly as we paid off debt, but at least we’ll be paying ourselves instead of someone else in the meantime!    We’ll continue to round up payments on the car and mortgage, but not dump all of our extra money to them like we were to debt.

14 thoughts on “Last student loan payment scheduled

  1. Andrew@livingrichcheaply

    Congrats! I’m sure that’s a great feeling. Very impressive. I have a good amount of student loan debt, and have paid off the high interest ones. Still have some low interest ones which I’m not too worried about. I think we’ll concentrate on maxing out our retirement plans and investing before paying extra on them (2-3% interest)…though I might payoff my student loans which are in the 4% range.

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    1. Mom Post author

      This loan I’m paying off was 2.1% – we just wanted it gone. We’re also likely to pay off the car next year (or maybe later this year), just to get rid of that payment. We’re rounding up the car payment, so we are paying more than the minimum, but we also know we’re going to need a new car in the next 2-3 years, and would rather save up for that in case we don’t get a 0% interest rate offer.

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