Repaying Student Loans? One Cool Trick
I only had a couple thousand left, but I that would have been 2-3 years of payments. After thinking a bit, I found a great way to pay it off all at once. I’ll explain it below.
5 Years of Loan Payments
I started paying on this loan about 5 years ago, when I graduated with my masters. I probably could have skipped this loan altogether, but I thought having a little more money would be good, and I was looking for work at the time I borrowed the money.
When I started my masters, I already had loans from my bachelors I had been paying for 10 years. Those student loans weren’t huge. But changing jobs a few times and moving a few times had interrupted my payments, so it wasn’t gone yet, either.
(Yes, I used deferral and forbearance when I could.)
When I finished my BS, I got a consolidation loan to combine a few student loans. This lowered my total payment and combined them into one.
Then, when I finished my masters, I was able to consolidate them together. Again, I only had one payment with low interest, which was very helpful.
How I Did It: One Trick
Completely repaying student loans is great. But I did use one trick to get to it early. And I took a little time setting it up.
Here’s how I got there. I decided I needed a bigger car – I wanted an SUV. I looked at several, and picked one out. I got a loan pre-approved and bought one I liked.
My car still had some value. I checked out the value online. I cleaned it up. My kids washed the outside and vacuumed it out.
To find my price, I looked at the ads for other cars like mine, a year earlier and a year older. Once I knew the range, I put my car high in the range. And I advertised it on a high traffic car ad site in my area. I put lots of photos into the ad.
Don’t get me wrong – my car was worth the price I asked, which was important to my plan. It wouldn’t do me any good if no one bought my car.
The Result: SUV in Exchange for Repaying Student Loans
People started calling me about it right away. I sold it in 4 days, which was fine with me. I knocked a couple hundred off the listed price. My price allowed for this.
Then, with the proceeds from my car, I called my student loan company and got my total student loan payoff amount. It only took one check, and I had some left over.
It was a great day. And my SUV payment is only a little more than my student loan payment was. Plus it has a bunch of features my car didn’t have, and it’s newer.
Nice trade, right?
Finally, NO MORE STUDENT LOANS!
You may have already thought of a couple of things. For instance, okay, you have repaid your student loans, but now you owe money on the SUV. True, but I can sell the SUV, I couldn’t get rid of my consolidation loan.
Also, you might notice that in a bankruptcy, repaying student loans is the only option you get. But if I need to, I can restructure the car loan I have now.
Get your student loan paid off! You’ll get there!