How I Paid Off My Student Loans: Money Moves That Worked

If you have student loan debt, you may be looking to pay it off faster. Your financial goals may feel out of reach thanks to your student loan debt, but you’ve got options for reducing your debt. Making some lifestyle changes and money moves could help.

​I paid off around $10,000 in student loan debt in under two years. Here are the money moves that worked for me. Find out how you could adapt similar strategies to fit your own lifestyle. 

I Increased My Income 

Four years after I graduated from college, I was making $12 an hour. I barely had money left over after paying my bills every month. I knew if I wanted to make real progress with my personal finances, I needed to increase my income. So I considered some major money moves.

And, after exploring my job options at home, I chose something life-changing: I accepted a job teaching English as a second language in South Korea. I signed a one-year contract which I later renewed for a second year. The job came with many perks, including better pay.

Increasing your income is a strategy to consider if you want to achieve debt relief sooner—but you don't have to take a job across the world. Just getting a part-time job or side hustle can help, whether it’s delivery or rideshare work, or a more-traditional part-time job. 

I Reduced My Living Expenses 

Making more money was one perk of my new job. But moving abroad also helped me trim my living expenses significantly. As part of my work agreement, my employer covered my rent. All I had to do was pay my apartment utilities and any other expenses I had back home and in South Korea.

No longer having to worry about rent every month made a huge difference in my stress level. It also made my monthly expenses more manageable. In the U.S., rent was the biggest expense in my monthly budget.

Moving across the world to take a new job may not be feasible, and finding a job that provides rent-free housing is unusual. But cutting costs can help you put more money toward managing your student debt.

Here are some ideas to explore: 

• Split housing costs with a roommate

• Cancel unused subscriptions or memberships 

• Negotiate the cost of expenses, like your internet or mobile phone bill 

• Downsize to a smaller apartment or house 

Every dollar you trim can make a difference. 

I Dedicated a Set Amount Toward Extra Payments 

Boosting my income and reducing my living expenses helped a lot. But the most impactful money move? Setting aside a fixed amount for extra payments. 

My living expenses were low in South Korea. Back home, I only had to cover my student loans and a storage unit rental. That meant I had a lot of room to rework my monthly budget. With my new budget, I could make sizable extra payments toward my student loans.

By putting extra money toward the principal balance of my student loans, I could pay off my debt faster, and save on interest.

Most months, I paid an extra $1,000 toward my student loans. Since I lived in Asia and received around 30 days of vacation each year, travel was also a priority for me. So, a few times a year, part of my income went toward travel costs.

Budgeting can help you develop a realistic plan for extra payments. If you’ve increased your income or reduced your living expenses, rework your budget. Determine how much more you can put toward debt repayment, and commit to it.

It doesn’t have to be $500 or $1,000. An extra $50, $100, or $200 every month can make a big impact. With consistency, you'll be well on your way to paying off your student loan debt.

Be Open to Changes 

Don't let student loan debt get you down. Focus on what you can control, and know that making small yet mighty money moves can help you pay off student loans.

Increasing your income, reducing your living costs, and committing to budgeting a set amount of money for extra loan payments can make a big difference. 

You don't have to navigate debt alone. Debt settlement doesn’t usually apply to student loans (particularly federal student loans), but if you're also struggling with unsecured debt like credit cards, consider consulting a debt relief company. A debt expert can listen to your story and explain your options.