‘At this point I feel Navient has MORE than broken even on their investment’: I have over $95,000 in student loan debt. How can I pay it off quickly and stop overpaying Navient?

Hey Money Minder,

So, I need some help with my student loans. I’m in my mid-30’s and finally making a decent income (around $124,000 before tax). After taking home about 100K, I’m left with student loans totaling over 95K. I’ve been paying the minimum since 2010, with some breaks for school.

Currently, I’m shelling out $1,300 a month towards my loans. But if I keep this up, it looks like I won’t be debtfree for another 20 years and I’ll end up paying around $312,000.

At this point, I can’t help but feel like Navient has already made a profit off me (I’ve paid them close to 100K, which is more than what I initially borrowed) . So, what’s the best way to tackle this and get rid of this debt ASAP?

EDIT: Just checked and I’ve paid a little over 65K since 2010. I’ve included more loan details below. Thanks for your help!

Farewell,
Loan Liberation Seeker

Response from THE MONEY MINDER:

Hello There,

Congratulations on reaching a point where you have a decent income and are looking to tackle your student loan debt head-on. It’s great that you are taking steps to address this financial burden.

Looking at your situation, it’s clear that your current repayment plan will result in paying a significant amount in interest over 20 years. To expedite paying off your loans and minimize the total amount paid, here are a few practical steps you can consider:

Evaluate your budget: Take a closer look at your monthly expenses and see if there are areas where you can cut back to redirect more funds towards your loan repayment. Creating a detailed budget can help you identify unnecessary expenses that can be trimmed down.
Increase your monthly payments: If possible, try to increase the amount you are paying towards your student loans each month. Even a modest increase can make a significant difference in the long run by reducing the total interest paid and shortening the repayment period.
Consider refinancing or consolidating your loans: Explore options to refinance your student loans at a lower interest rate or consolidate them into a single loan with more favorable terms. This could potentially lower your monthly payments and save you money on interest over time.
Prioritize high-interest loans: If you have multiple student loans, consider focusing on paying off the ones with the highest interest rates first. By targeting these loans, you can save on interest and make progress in reducing your overall debt.
Seek professional advice: It may be beneficial to consult with a financial advisor or student loan expert to explore all available repayment options and devise a customized plan that aligns with your financial goals and timeline.

Remember, tackling student loan debt requires discipline and commitment, but with a strategic approach, you can efficiently pay off your loans and achieve financial freedom sooner. Best wishes on your journey to becoming debt-free from THE MONEY MINDER.