This piece is part of my 2016–2026 archive migration. Some original formatting, content, and external links may be missing, changed, or not be optimized.
If I can do it, so can you. Don’t let student loans take you out
Here was my plan. I wanted my first full-time job out of college to pay me a minimum of 60k. Since I got three degrees, I figured each degree was worth a minimum of at least 20k. Ultimately, that logic was unsound, the degrees aren’t even worth that much, but I still don’t regret acquiring them.
Step 1: Build An Emergency Fund
I didn’t tackle my student loan payments right away. I built an emergency fund.
What’s the point of having no student loan debt if you don’t have liquid cash in case you lose your job or run into a financial emergency? There isn’t; you’ll only run yourself straight into debt again.
To start, I built a three-month and then a six-month. After that, I slowly started building out my one-year emergency fund, the ultimate goal. Never stop at a six-month emergency fund if you can.
Step 2: Aggressive Investing
Laser focus is critical when you’re pursuing any financial endeavor. After the six-month emergency fund was built out, I felt secure with my finances. If I lost an income source, I would still have a stable financial cushion to fall back on.
The investing didn’t stop while I was building out my emergency fund, but I wasn’t investing as aggressively while building out my emergency fund. Once that was handled, I started investing anywhere from 25% or more of my monthly income.
Step 3: Pay Off The Parent Plus Loan
You can skip this step if you don’t have any parent-plus loans.
My mother was gracious enough to take out a student loan on my behalf. I thought it was only fair to pay off her loan first. So, I did. That loan was about 25k and also accumulated the highest interest.
I not only made the minimum payment, but I paid additional each month. Usually, I sent in anywhere from $1,000-$2,000 per month to chop that sucker down.
How did I put this much extra income on my student loans? I had multiple income streams. Outside of writing, I usually always have 2–3 income sources from traditional employers, which helps me stay ahead financially.
8 Actions That Helped Me Pay Off My Parent Plus Loan
Get rid of your student loansmedium.
Step 4: Pay Off The Primary Student Loan
The last step is the primary student loan which ran up about 35k. By the time it came down to paying this one off, I already had a positive net worth and enough liquid cash to pay the sucker off in full, but why do that if it’s not accumulating interest?
So, the choice is up to you. Once you get to the final loan, have a six to twelve-month emergency fund, and have a positive net worth, you must ask yourself, is it worth investing 20–30k in a loan payoff, or should I invest that money and earn income?
Conclusion
My steps might be somewhat unconventional or seem in reverse order. You might think you should prioritize paying your student loans before building out an emergency fund or investing, but you don’t want to hurt yourself financially when paying back a business.
Make the minimum payments until you complete steps one and two, then hit it hard paying down the student loans. The good news is that you can throw money at your student loans without shooting yourself in the foot because you have a financial cushion.
Step 1: Build An Emergency Fund
Step 2: Aggressive Investing
Step 3: Pay Off The Parent Plus Loan
Step 4: Pay Off The Primary Student Loan
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.