How I Paid Off My $16,000 Student Loan In 1 Year

Paying off student loans is something so many of us face. And while the formula for debt payoff is often the same — spend less, allocate more — everyone has different options available. Here's how one woman paid off $16K worth of loans in one year, while living in an expensive city.

Based on an essay by Hailey Masterson

Read the original essay here:

Video narration by Maria Dimou

The Financial Diet site:

[TransformwithTayani]

Some people’s parents want to pay for their child’s college. I don’t see anything wrong with that. My parents didn’t pay for my college but I’m setting an up an account to save for my babies college if that’s what he wants to do.

[eckmann]

This is the first one of these I’ve seen that wasn’t “I moved in with my parents.” Well done.

[Roll]

I'm down to $40k. I know that looks terrible, but it was way worse before...

[Nedecha]

Yay Canada! Thanks for the Canadian exposure and conversions.

[SageThyme]

so basically work, save, keep expenses low.

[dorkette]

- Don’t buy books!!!! Go to the library if you’re town has one. Toronto public library has free ebooks to download on your ipad (I screenshot pages I like/ want to look back on)
- I like the volunteering in return for tickets! Most yoga studios offer energy exchanges, where you work 5-10 hrs a week in order for a discounted or free membership.

[makaylamarshall]

Even though $16, 000 is a very privileged student loan debt coming well under the national average; this is the most realistic video The Financial Diet has made about paying off student loans.

[TheBemused]

Managing expenses, budgeting, and sheer determination are 🔑

[technojunkie]

Omg 4 part time jobs at the same time! As someone who also had to work multiple jobs at the same time while being a full time student I can relate all too well to the envious feelings towards peers who had their tuition paid for - major props to you for taking it in stride and coming out stronger and debt free!

[tiffany.Elizabeth.]

$760 a month for rent in Toronto?! This must have been like 10 years ago lol

[milikoshki]

having 4 jobs while in uni sounds hellish; props to this person for making that work. But the bitterness in the beginning feels a bit unwarranted. Sure, if someone is actually using a scholarship to go on vacation (which I kind of doubt, considering how grants usually come with lots of strings attached) fire away. But not working during the semester isn't necessarily a great indicator of personal wealth. You don't know if these people are killing themselves over summer vacation to make enough money so they can focus on school during the semester (with the help of loans), you don't know if their parents are working multiple jobs or nights in order to earn extra cash to support their kids, and you also don't know if they're just extremely in debt. Making assumptions about someone's financial circumstances and then judging them based on that is unkind and unwise, and is also a complete waste of time.

[sophiesmith]

Maybe it seems sad, but I appreciate the point about having a "frugal social life." Building a friend group in a new city is really difficult for me, and framing it as an opportunity to save some extra $ made me feel a lot better.

[legsofoctopus]

It’s ridiculous that how expensive it is to simply be “educated”...

[myal]

After hearing the “crazy” rent she paid after college, I stopped the video. Paying a third of my rent would do wonders for my savings 😭

[lightingflashxD]

As someone who is currently working 3 jobs whilst also in full-time uni, I can relate to that envious feeling of others having their parents pay for everything. But I truly feel that working while studying gives you a completely different life perspective than what you'd get if you didn't. Just hoping all this hard work pays off 🙏🏻

[Phlimbob]

Right off the bat, I am that person whose parents paid for my entire college tuition, my rent, my phone, my food, and they gave me money each semester. I know I was incredibly lucky and even privileged in this regard, but that opening statement was like a personal attack. My parents planned from the beginning to pay for college education. I know if I went back to school for a Masters, they would insist on paying for that as well. Considering how crippling student debt can be, I would take up their offer in a heartbeat.

[TaylorStrutton]

I appreciate the Canadian (and a fellow ontarian) . It's hard to relate when the American financial system is so different than ours here in Canada.

[meagan]

So glad to hear a Canadian experience! I’m from Toronto too! ❤️ 🇨🇦

[tenaciousdestiny]

But can you do this with my six figure student loan debt?😂😭😂

[capnkirkie]

The editing has gotten so good on their videos! So fun to watch (and great information as always) ^^