Well, I just clicked a button on the Sallie Mae accounts page that should have my federal student loans PAID OFF IN FULL!
It feels really awesome.
The loan started out as a bunch of federal student loans that I consolidated back in 2006 (after I graduated). So they were serviced by the same bank that my private student loans were at. At some point last year, Sallie Mae stepped in and took over as the company in charge of my loans. The Sallie Mae accounts page made me want to pay off my debt even faster, since they showed the daily accrued interest. I was getting sick of it!
So today, I paid them off. I’m no longer paying 3.5% interest on any debt. Woo!
Of course, I still have about $29k in private student loans (thanks for being so expensive, MIT!), but they’re at a pretty sweet rate of 2.75%. But I’m still coming after those! And that’s much better than what I graduated with: more like $70k at 8.5%. But I’ve been aggressively paying that down, too! Luckily, that loan’s rate was pegged to the Fed Rate, and (unluckily for those of us with savings accounts) the Fed rate has dropped like crazy since I graduated. Plus I enrolled in all the programs that the bank had to offer that would lower my rate.
I am thankful that my rates are so low. I know a lot of people aren’t as lucky.
But the final message for today:
My federal student loans are GONE!
[Edit 5/7/12: Just looked back on my private student loans. Turns out I only started with $57k at graduation. And so far I’ve paid $49k in principal and interest, but I still owe ~$29k. It’s mildly frustrating realizing I’ve already paid at least $13k in interest on my private loans (according to the loan company). No, not mildly frustrating. Gut-wrenchingly disgusting. Oh well. NEVER AGAIN! (until I buy a house)]