This blog was created to serve as an inspiration to all who read it..........to aspire, to love and to live a life of purpose.

Thursday, May 17, 2012

How To Pay Off $90k Student Loan Debt in 7 Months


If you go to school in the United States, you KNOW about student loans. If you dare go to graduate school in this country, you Definitely KNOW about student loans. You pay all this money, get a certificate, then sit around and ponder how to pay it all back.  In 20 years? In 10 years? In 7 months?

It's possible. That's what Harvard Business School graduate Joe Mihalic has proven. Here's the story in short hand. 

Joe Mihalic graduated from Harvard Business School in 2009 with his M.B.A at 26. He got a good job at Dell in Austin Texas and was doing so well, he could afford a nice house, two cars, and a motorcycle. Except he had $101,000 in student debt. 

By mid 2011, he had paid over $22,000 towards his debt but still had over $90,000 because of interest (its a demon, that thing). Shocked, and realizing if he didn't get proactive, he would be paying this debt off for 10 years, he decided to commit to paying off the loan in 8 months by any means necessary. 

His two objectives were; (1) Increase Revenue. (2) Reduce Expenses. 

Towards the first objective, he sold a car, motorcycle, roadbike, drove a pedicab and started a weekend landscaping business with his buddy. Towards his second objective, he stopped contributing to his 401k, didn't go home for Christmas, brought a flask with liquor to bars where he'd order a Coke, didn't buy any clothing, used duct tape to repair his car, and found two roommates, among other such sacrifices. 

For more motivation, he chronicled his experience on a blog, "No More Harvard Debt," where he described each challenge and moment of self-doubt.

On March 29, 2012, he made his last loan payment. Now he's debt free. He was also lucky...rather blessed to not experience any major disasters during his commitment period, he is single, doesn't have a child and lives in texas which is pretty low cost in living. 

Wow.

I don't know about you. but this is hell (or heaven) of inspiring.  Congrats to him.

Lessons Learned:
1. If you commit to something and put your mind to it, you can make it happen. 
2. Discipline & Sacrifice "pays off" (Literally!)

Here's the video he made about his journey;

Stay Inspired...

2 comments:

Anonymous said...

Great post. I have a lot less debt and I will be debt free by the end of this year if not sooner but Gods grace. I will plan and pray He blesses my plans!

Princess R said...

AMEN! If he can do it, you CAN as well. Good luck!