STW: How I Paid Off $25,000 in Student Loans in 18 Months
The Story
"After graduating, I was staring down $25,000 in student loans. It felt overwhelming at first — I was working a 9–5 job that barely covered rent, and the thought of paying loans for the next decade made me anxious. So I made a plan. I moved in with roommates to cut rent in half, picked up a weekend side hustle walking dogs, and stopped eating out as much. Every extra dollar went toward my loans. After 18 months, I made my final payment and finally saw that $0 balance. It was the best feeling of my life."
Advisor Breakdown
Situation:
$25,000 in student loan debt immediately after graduation.
Standard repayment plan = 10 years of payments and thousands in interest.
The borrower was motivated to shorten this timeline dramatically.
👉 Our take: I like that this story starts with urgency. When you’re fresh out of school, you don’t always have big expenses like kids or a mortgage yet — that’s the best time to attack debt aggressively if you can.
Task:
Develop a realistic strategy to wipe out debt in under two years.
Balance it with entry-level income and modest lifestyle choices.
👉 I think setting a hard timeline (18 months) is smart. Debt payoff without a clear end date often drags on and kills motivation.
Action:
Housing costs slashed → moved in with roommates, cutting rent/utilities by ~40%.
In my opinion, this is the #1 lever most people underestimate. Housing eats the biggest share of income — fix this, and everything else gets easier.
Side hustle: Dog walking 🐕
Earned ~$20–$25 per walk, ~5 walks/week = ~$400–$500/month.
100% dedicated toward loans.
I love this choice because it wasn’t just about money. Dog walking doubled as exercise, mental health therapy, and stress relief. That makes it sustainable. Too many side hustles burn people out because they hate the work.
Lifestyle changes → less eating out, paused vacations, cut non-essential subscriptions.
I’d rather see small sacrifices here than someone cutting out all joy. That tends to backfire long term. They struck a good balance.
Debt avalanche method → paid highest-interest loans first while making minimums on the rest.
As an advisor, I strongly prefer the avalanche method for saving on interest. But if motivation is an issue, the snowball method (smallest balances first) can work better.
Automation → auto-pay kept payments on time and shaved a small % off interest rates.
I recommend this to every client. Automation removes human error and forces discipline.
Result:
~$1,400/month directed toward loans (regular payments + side hustle + rent savings).
Entire $25,000 balance wiped out in 18 months.
Saved thousands in interest.
Freed up ~$1,400/month for future goals (savings, investing).
👉 The big win here isn’t just the $25K gone. It’s the habits built: frugal living, side hustle mindset, and the satisfaction of seeing progress. These habits compound far beyond the loans themselves.
Key Takeaways
Cut fixed expenses first. Rent and housing are the biggest levers.
Choose a side hustle you enjoy. If you hate it, you’ll quit. Dog walking worked because it was fun and sustainable.
Use a clear method. Avalanche = more efficient, snowball = more motivating.
Automate everything. It reduces stress and keeps you consistent.
Debt freedom is just the start. The discipline you learn creates a lifelong advantage.
