A Wonderful Time To Be Alive! How To Actually Pay Off Your Loans

Matt McDonough
5 min readSep 8, 2022

Living interest-free on student loans for almost two years offers a rare glimpse into the relaxing life of the debt-free. President Biden recently announced a Student Debt Relief Program, and this is your ticket to kick-start your debt repayment plan and officially join the debt-free club!

Emily Ranquist via Pexels

Make A Change

Opportunities to wipe out $10,000 in debt do not come along often, this is a once-in-a-lifetime opportunity to finally gain financial freedom.

Financial freedom from student loans is not a coincidence, give yourself the best chance to break free by pulling together all of the information you need to create a loan repayment plan.

So, what do you do next?

Take control of your loans with math!

Your New Favorite Part Of Student Loans: The Math!

Ok, I may be the weird one who enjoys the math of debt repayment, but you can use math to pay off your remaining student loans on your terms.

There are five pieces of information that you need to find to create a debt repayment plan:

1. Any outstanding interest accrued on your loans,

2. The remaining principal balance owed on your loans,

3. The annual interest rate on your student loans,

4. The number of payments you are required to make each year on your student loans (typically one payment per month), and

5. The minimum payment you need to make.

Here is the best news, with these pieces of information you can quickly make a computer do the math for you!

Over To Excel

Or Google Sheets if you prefer (gross, but ok it’s your plan).

To start you will need to summarize the five necessary pieces of information for your debt repayment plan. My example has $2,000 of accrued interest remaining, $20,000 of principal remaining, an annual interest rate of 6.5%, and is required to make monthly interest payments:

Matt McDonough

Hello! I am a CPA by day, writer by night, and adventurer on the weekends. I’m on the lookout for fun ideas to read, please send anything interesting my way!