Not your average “tale of the tape”

After working two jobs for over a year to get enough money to start school, I enrolled at Full Sail Real World Education in Winter Park, Florida to pursue my dream of working in the audio recording industry through their "recording arts" degree program. The learning experience was fantastic and I made some of the best friends I have ever had in my life!

After I graduated, I took up a job as a DOD contractor to assist US & Coalition Forces in Operation Iraqi Freedom. After having spent two and a half years in Iraq and with careful budgeting, I successfully paid off my Sallie Mae loans!

After facing challenges and adversity in Iraq, I am confident and more determined than ever in actively pursuing my dream of working in the Audio Recording Industry! I know this is not your average "tale of the tape," but I guess everyone has their own way and this one is mine.

James M., Fayetteville, NC

You are not alone

Thank you for the letter letting me know that I paid off one of my student loans!

Having children right after college, put off my ability to do this, but the people at Sallie Mae were always willing to work with me. I paid when I could and deferred when I was out of work tending to my children. After attending Hamilton College for Biology and Theatre, I put myself through grad school after to obtain a Master's in Education while raising my family.

Last year, I had my first year teaching opportunity and was able to fulfill the monthly payments regularly. It makes me so proud to say that I have a debt paid off, but even more so is knowing that the debt was incurred to put me on the path to a career that will support my family and make such a big difference in the world. To all of you out there who see an education debt as an uphill battle, know that you are not alone in the battle! The education you received and the nice people at Sallie Mae will help you see that it was a lever to a better life. One loan down and two to go and I know I can do it now!

Best wishes, Rebecca

The economic philosophy for anyone should be "to gain"

My name is Robert and I recently paid off my student loan. After needling it down for several years, I decided that in these uncertain times and in the present economic climate I could use one less bill. Instead of abandoning my economic responsibilities, I decided to repay what I rightfully owed.

The economic philosophy for anyone should be "to gain." If the market is performing at a lower rate than your interest owed on a loan, the wise thing to do is pay off the debt. Since practically all debt these days is outperforming the market, you'll save more money from not paying the interest, thereby gaining. My student loan was manageable and based on the philosophy I just outlined; the prudent decision was to make one payment to finish off the loan.

Robert

Make a plan and evaluate financial goals

I graduated from Bentley College in Waltham, MA in December 2008 with a degree in Managerial Economics. Since achieving my degree (and being a first generation college graduate), I have had the pleasure of working for Accenture in their consulting workforce.

In order to successfully repay my college loans, I needed to make a plan and evaluate my financial goals. I assessed my needs versus my desires and attempted to minimize unneeded costs. For example, I decided to live with my family after I graduated college which allowed me to eliminate rent. I also decided to stick with the car that has been handed down many generations, my faithful 1993 Buick Century. Though it is not the flashiest of cars, it gets me to the locations I need to be at in order to attain my future goals.

When my check gets deposited into my account, I put 60% (after taxes, health insurance costs, dental costs, and 401k) into my savings account, and leave the rest for expenses such as food, gas, entertainment, and other unforeseeable expenses. In order to ensure that I do not go over the weekly limit I have set for myself, I have learned to carry cash and keep receipts so that I can physically see what I spend.

Saving has allowed me to accrue a good bank balance. If I know I do not need money immediately, I put it toward high interest or variable loans, not just the total amount. This ensures not only that my monthly loan balance will go down but that I will be paying less overall and that I won’t be seeing large increases in my monthly payments due because interest rates increase.

Although college loans may seem very hefty and can cause a large amount of stress to college students or graduates, they are manageable if the correct steps are taken.

Marcela A.

An impromptu decision

I was in a five-year Masters & Bachelors Science Scholarship Program at a wonderful Historically Black College & University (HBCU) in Atlanta GA. All of my major needs were paid for by a scholarship. However, during my last year, I needed a small amount to help me with the little things. Sallie Mae made it possible for me to purchase everything that I needed! I graduated with a 3.5 GPA with both my Bachelors and Masters degrees. I’ve been successfully performing in the Information Technology industry for the past 9+ years.

It took a few years to pay off my loan. I had always been told that a school loan was a GOOD debt, so I paid only the minimum amount due each month. This prolonged the process and impacted the amount of interest I paid over the life of the loan. Once I got the balance down to about $1200, I just paid it off. Paying off my loan that day was ONE OF THE BEST IMPROMPTU DECISIONS I’VE EVER MADE!!

K. L. B., Charlotte NC

Once I was in a position where I could ... I doubled my payment to Sallie Mae and paid off my loans successfully

I was 19 and a single mother living on my own with a $10 per hour job. I knew I didn't want to live like that forever and I was the only one who could do anything about it. After long hard thought I decided to go to school for Criminal Justice. I had taken a course in high school that was a criminal justice class that had piqued my interest so I thought continuing my education with that in mind was the best way to go. After grueling hours of working full time, babysitters and full time course work at a local community college I achieved a goal: Landing myself with a job at the municipal courthouse in my hometown.

After almost three years there I moved on using my experience as I went and became a paralegal. During all of this I paid the minimum payment each month to my Sallie Mae loans reminding myself that my credit could not use the abuse of missing a payment. It took a couple of years to pay off my Sallie Mae loans, but once I was in a position where I could pay the bills more easily I doubled my payment to Sallie Mae and paid off my loans successfully.

Thank you, Georgia B.

It was a great sense of relief to make that last payment!

I graduated in 1994 with a B.A. and 1996 with a M.A. in English Writing from Andrews University in Berrien Springs, MI. Pursuing a career in technical writing led to many opportunities in the Information Technology field working with great companies. Since that time, monthly payments were automatically deducted from my account and it was only recently that my dad inquired about the balance. When I told him, he asked me, “Why do you have money in the bank making less interest than the interest you are paying on your loan?" I looked at the numbers and it made perfect sense to pay off the balance! I also realized that I could have paid the loan off earlier as it was now 1/4 of my original debt.

I work in a collection agency; the outstanding number of individuals who are not able to pay their bills is staggering. My suggestion would be to have a financial advisor look over your accounts and map out a timely method of clearing/reducing debt. No sense in saving money with little interest and having a loan with a higher interest rate.

Thank you for your acknowledgment letter and the chance to share my story with others who may be in the same situation. It feels great to have "earned my degrees"!

Sincerely, Lois F., St. Louis, MO

I saved myself thousands of dollars in interest

I am a young professional who went to school for both a bachelor's degree (at the University of Southern California) and a master's degree (from CSU Long Beach), and completed my studies in Communication in 2005. As is typical of younger graduate-degree holders, I graduated with relatively little work experience and started out at the bottom level of the industry I ventured into. With my low salary, I began repayment like most others — grudgingly paying the minimum payment on exactly the due date.

It wasn't until I was a year into repayment that I went back to look at my payment history, trying to get a sense of achievement after 12 months of paying down my debt. Instead, I was shocked as I realized how little of my monthly payment was going towards principal, and how much of it (more than half!) was being wasted on interest. This is Finance 101 to everyone else, but seeing those numbers really brought home the cost of having debt for me.

I turned a corner. I added $20, $50, $100 to every monthly payment that I could. When I was the recipient of a financial gift, I put a substantial amount toward my loan. I never deferred, postponed, or "advanced" the monthly payments by the extra amounts. When I got a raise, I put more toward my payment. When I got a new job and a higher salary, I put more toward my payment. I promised myself that I would not take on more debt (though I was long overdue for a newer car) until my loan was paid off. I joined Upromise and earned extra money toward the interest on my loan. For almost a full year, I was paying more than 3x the monthly payment.

The result: I paid off my student loan in 3 years and 8 months. I saved myself thousands of dollars in interest, over 6 years in payments, and earned an incredible sense of achievement that I was able to set a goal and see it to the finish.

And the bonus: I got myself a new car. :-)

Vanessa H., Long Beach, CA

Sallie Mae helps you rise above

It’s been four years since I finished my undergrad and I see the true value of my education today more than ever. The down economy has hit everyone hard. I personally know many who were laid off this year and thanks to Sallie Mae I was able to rise above in the job market and maintain full-time employment. Having a college education is imperative when jobs are scarce. Thank you to Sallie Mae for helping to fund my education and thank you to my parents for helping me to pay it off. It’s the best decision I ever made. Next step graduate school…the future is bright.

Kathleen R., Alexandria, VA (University of Maryland University College)

Another of the easiest loans I've repaid

This has been my second opportunity to repay a student loan; in 1970, I began payments to a National Defense Loan which helped me achieve a bachelor's degree at Iowa State University. If my memory is good, payments were about $43 per month. I have often said that it was the easiest loan I've ever repaid.

After a long military career, I found myself retired at fifty years of age and wondering what to do with the rest of my life. Information Technology caught my attention, so I went back to school for an Associate Degree and took on another student loan, this time with Sallie Mae. Another of the easiest loans I've repaid. Thanks to this formal education at Iowa Central Community College, I had one more career which included some classroom teaching and an IT job with the Missouri Department of Corrections. I am retired now, and able to pursue my many hobbies which include computers and networks, music, skeet, canoeing, hunting and fishing.

Thanks Sallie Mae!

Lyle H.

Strong financial discipline has allowed me to pay off my loans in less than 2 years out of school

I have successfully paid off my student loans with Sallie Mae! I enrolled in college in 2001 for the first time at Lehigh University to pursue a B.S. in Mechanical Engineering. During this time, I obtained a few loans to help me maintain while I was in undergrad. I remained in school and in September 2007, I received my Masters in Mechanical Engineering and Biology.

Shortly after my second graduation, I was hired to work with IBM as a SAP consultant and travel all over the country implementing SAP. Currently I work near Philly with AmerisourceBergen on an IBM SAP implementation project. Obtaining a job with IBM, and strong financial discipline has allowed for me to pay off my loans in less than 2 years out of school. My greater goal is to build a school to focus on STEM fields — Science, Technology, Engineering and Math. Because of this goal, I made a small goal to become debt free, so in October 2009, I was officially debt free and now I am in a better position to work toward building my school for 2025.

Melodie K., Houston, TX