STW: How I Paid Off $75,000 in Student Loans in 4 Years
The Story
"When I graduated, I had $75,000 in student loans. The number felt crushing — more than my first year’s salary. At first, I ignored it and just made minimum payments, but the balance barely moved. After six months, I got serious: I built a detailed budget, picked up freelance work on top of my 9–5, and threw every spare dollar at my loans. I lived with roommates, skipped vacations, and made student loan repayment my top priority. After 4 years, I made my last payment — debt-free at 26."
Advisor Breakdown
Situation:
$75,000 in federal and private student loans.
Entry-level salary barely covered living costs.
Minimum payments stretched payoff timeline to 20+ years.
👉 I see this all the time. A balance like $75K feels impossible, but the real issue is the long repayment horizon. Without a plan, it just hangs over you.
Task:
Pay off $75K in under 5 years.
Build a system that balanced living expenses with aggressive payments.
👉 I like that this person set a clear goal: debt-free by 26. Goals make sacrifices easier to stick with.
Action:
Housing Cuts
Lived with two roommates, cutting rent/utilities from $1,200 → $650/month.
Housing is usually the biggest line item. I always encourage tackling this first.
Freelance Side Hustle
Built a side income writing + digital marketing, adding ~$1,000/month.
This is what accelerated the payoff. Earning more often beats extreme frugality.
Aggressive Budgeting
Stuck to essentials, limited dining out, paused vacations.
Used the zero-based budget method to assign every dollar a job.
I like that they didn’t cut all joy, but they kept “wants” capped tightly.
Debt Avalanche Strategy
Paid off highest-interest loans first (8%+ private loans).
Once cleared, snowballed freed-up payments onto remaining balances.
From my perspective, this was the smartest move. Private loans with high interest eat you alive if ignored.
Automation
Automatic payments = no missed deadlines + small interest rate discounts.
I always recommend autopay — it removes friction and builds discipline.
Result:
Average of ~$2,000/month directed toward loans (salary + freelance + budget savings).
Balance cleared in 4 years instead of 20+.
Saved tens of thousands in potential interest.
Gained freedom to start saving for a house and investing by mid-20s.
👉 This is a textbook example of how side income + smart budgeting beats just scraping by with minimum payments. The debt was huge, but the system made it possible.
Key Takeaways
Big debt requires big action. Side hustles can cut payoff time dramatically.
Housing = the biggest lever. Roommates or downsizing free up serious cash.
Use avalanche for high-interest loans. It saves money over the long haul.
Automation works. Keeps you on track, builds momentum.
Mindset matters. A defined end date (4 years) turned sacrifice into motivation.
