[-$46,776] Re-refinancing My Student Loan and My Shrinking Opportunity Fund

My debt is still big, but it’s not crushing me anymore!

Student Loan Re-refinance

Good news! I was able to re-refinance my loan with my current student loan company to get a lower rate. Everything went through as of yesterday and I am now the proud owner of a shiny new student loan. I don’t know if this is a common thing for student loan companies to allow or not, but I’m just glad I didn’t have to move over to a new servicer. Woot!  

As I wrote about in my last post, my loan terms have changed. My old variable APR, which started at 3.42% (when I refinanced the first time from many federal loans to one private loan), ended up rising to 4.98% and was still climbing.

With my re-refinance, it has now been replaced by a fixed rate loan of 3.25% for the life of the new loan. Interest rates have started rising at a good clip over the last year and there aren’t any plans I can see for that trend to stop, so I just locked in a fixed rate.

The new minimum payment is like $855/mo (5 year term), but there’s no way I’m paying that if I can help it. I’m sticking to my payoff plan. Today’s $1720 payment was my first payment on the new loan. This re-refinance will save me at least $40/mo, if not more as my old adjustable rate would have continued to rise. So somewhere between $700 – $900 will be the total interest saved by the time I pay off the loan.

Opportunity Fund

My Opportunity Fund is taking a beating.  I traveled to help an ill family member and had my own doctor appointments and medical tests that I mentioned in an earlier post. As a result my Opportunity fund is down from $2000 to $1000 with still one medical test $$$ left to pay for.

Those test results are now in. While not terrible, the test results definitely aren’t good. My old health problem is recurring, albeit not in such an advanced state yet that I need another surgery immediately. Doc wants to take a wait and see approach before doing anything. I don’t know how I feel about that, but I can at least use the time to work on improving my health. I do NOT want to go under the knife again.

My Changing Student Loan

My student loan debt started out like this. $112k+ across 12 different loans at high interest.

Now, just one loan at $46k, it’s time for this annoying thing to go away. (I’m the one on the right about to make that happen.)

As my student loan debt is shrinking, I’m starting to think about it differently. I know it’s still big enough to be (financially) dangerous, but it’s not so big anymore that I feel overwhelmed and want to run away from it.  It’s becoming less of an all encompassing horror and more of an annoyance.

 

Punch of the Week

A satisfying $1720 right hook to my Evil Student Loan. Pow!

.

“Debtor’s prison is real, and opportunity cost is a bitch.” (DDSW Archives)

 

13 comments

  1. C@thesingledollar · June 15

    I think this is all awesome. Even the shrinking opportunity fund. It’s literally there so you can spend it on things you want/need to do, right?

    Like

  2. Cathy E. · June 15

    So proud of you! Keep making wise decisions!

    Like

  3. Michelle · June 17

    Great job on the interest rate!!! You will be student loan free so soon!!!!

    Like

  4. Maria · June 17

    Awesome that the re-refinancing went through! You are doing so well!
    And it’s so great that you were able to be there for a sick family member.

    I do hope you’ll prioritize your health as much as you can, though of course it’s hard with debt and roomates and everything. Even if it means slowing down a little with the debt repayment etc, if that means you can eat healthier food, get physical therapy or whatever it is you may need.

    Rooting for you!

    Like

  5. Cynthia · June 20

    You are rocking it so hard! The progress you have made is so wonderful. You are providing a superb testament to what can be accomplished with dedication and hard work. So inspiring!

    Like

  6. zeejaythorne · June 24

    It’s so cool to see that you can feel so much better once you’ve gotten a SL down to a manageable, if still large size. Hope springs eternal.

    Like

    • Once I get it down to the 30’s, it will be around the same size as my old credit card debt. By that point I will be in familiar territory as I have already paid off debt that size before.

      All of this is assuming that things run relatively smoothly in my life, financially, for the next year and a half; and that’s a tall order.

      Liked by 1 person

      • zeejaythorne · June 27

        Here’s hoping!

        Like

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