One of my goals for 2012 was to pay off the smallest of my student loans.  The balance at the beginning of the year was only $4,300 (originally $10,000 2007) and it was way down on the priority list considering the main goal this year (which I am getting close to finishing up) was selling and buying a home which takes (a lot of) cold hard cash.  Well, last week I did it! After selling our home I saw the cash sitting in the account and thought enough was enough I am getting rid of this account.

Student Loan Debt Balance

I am not sure when I officially signed for the loan, but I do know that:

  • It was a 10 Year Note
  • At 5% Interest
  • Interest was deferred until the month my payments started (2/2007)
  • Principal was $10,000
  • Loan was fully amortized

Calculating How Much I Saved on My Student Loan by Paying it Off 4.5 Years Early

According to an amortization calculator if I were to pay the $106.07 for 10 years I would have paid $2,720 in interest payments.  Using my lender’s history:

DateInterest
12/12/20124.35
11/12/20124.33
11/12/2012
10/23/201211.08
9/24/201211.48
8/24/201211.94
7/27/201212.35
6/25/201212.95
5/18/201213.82
4/24/201214.62
3/27/201217.04
3/13/201215.84
2/14/201216.63
1/18/201217.68
12/22/201118.89
11/29/201119.26
11/9/2011
10/12/201121.67
9/19/201122.86
8/24/201123.99
7/27/2011
7/14/201125.18
6/28/201125.51
5/25/2011
5/24/201126.29
4/19/201126.62
3/17/201126.95
2/14/201127.28
1/25/201127.6
12/23/201027.93
11/30/201028.25
10/28/201028.58
9/14/201028.9
8/30/201029.22
7/30/201029.54
6/8/201060.34
4/30/201031.1
4/1/201062.52
2/1/201031.42
12/31/200932.03
12/17/200932.34
11/4/200932.64
10/2/200932.64
8/31/200966.5
6/29/200918.22
6/8/200938.17
5/12/200938.47
4/10/200938.76
3/2/200938.76
1/22/200970.84
11/24/200872
9/29/200873.16
7/28/200874.32
5/27/200875.46
3/31/200838.29
3/11/200838.57
2/1/200838.57
12/27/200738.85
11/28/200739.13
10/31/200739.68
10/2/200739.96
9/4/200739.96
7/23/200740.25
6/4/200740.54
5/31/200737.18
5/2/200745.31
4/5/200741.38
2/27/200741.67
$2,107.66

 

Not going to lie, I was pretty bummed when I first saw that I only saved  $613 in interest payments (and that excludes tax savings).  Then I remembered my favorite thing about paying off debt; the $106.07 while not a lot of money lowers my monthly and yearly nut.

By finally getting rid of this debt I have cleared up $1,272/yr of after tax money that had to go out to someone else every year for the next 5 years! Every $100/month extra I invest for the next 5 years could grow to be thousands by the time I decide its time to start drawing down on those funds.

Did you complete any goals this year?