Refunds and Loans

Document created by barbarac on May 18, 2016Last modified by amara.mastronardi@socialedgeconsulting.com on Dec 5, 2016
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Taking out loans can be a necessary evil in the quest to earn a college degree. With the rising cost of tuition, not to mention books and other supplies, college is by far, the largest investment I've made in my 28 years...

 

That being said, it is also the main reason why my tax refunds have been so large over the last few years. Usually, I use my refund on something special for me, like a vacation, or another splurge that I feel I deserve for all of my hard work, however, I found a new way to use that windfall of money that the government repays me, by repaying them for the loans I've taken out for my education. While I would love to take an Alaskan cruise or travel to Europe to see my brother, or California to see my parents, the truth is, I will have more financial freedom to do all of these things later and more frequently if I am cutting down on the interest I'll have to pay.

 

Truth be told, it hurts a little to see that multi-thousand dollar refund hit the bank, and then immediately turn around and dump it back into my student loans, but getting my next statement makes for one heck of a smile when I see how far down the balance has fallen. I still put a little away from my tax refund for my emergency and future savings, but paying down debt, especially student loans, is by far more important than buying a round-trip plane ticket. Besides, a road trip from the East Coast to the West Coast will be a lot of fun and will afford me the opportunity to see more that I would from 30,000 feet up, while saving money. It's about experiences and I'll have more of them the sooner I get out from under these loans. I estimate that it will still take time to pay off, as both my husband and I have loans, but that we will be completely free of them in a total of seven years, and we've already been working on it!

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