Earlier today, (while at work), I was sitting here thinking of what to do with some of my current and future Steemit profits and I decided that paying off my student loans was top of the list. Even if you don't make a large profit on Steemit, this can still apply to you. After all, I am a newbie so I haven't profited much yet either :) I received my undergraduate degree from a top 20 University in the United States which cost a pretty penny at the time. After racking up student loans for that wonderful piece of paper (the Diploma), I proceeded to rack up additional loans for my graduate school studies to receive my Masters degree. Now has all of that paid off career-wise? Yes, I’d like to think so. However, since I still have loans to payoff, I decided a good use of my Steemit profits would be to pay extra on my student loans and pay them off sooner!
You can do the same and it can drastically decrease the amount of years and therefore the amount of interest and money you would have to pay. Here are 2 examples I created just to show how a modest extra payment each month can have a huge impact on even a large student loan amount:
Example #1:
Student Loan Debt: $100,000
Monthly Payment with a 4.66% Interest Rate (the current interest rate for Federal Direct Undergraduate Subsidized/Unsubsidized Loans): $1041.21
Payoff Time: 10 years
***Add an EXTRA payment each month of $200 profit earned from Steemit
Payoff Time: 8 years
Example #2:
Student Loan Debt: $50,000
Monthly Payment with a 6.21% Interest Rate (the current interest rate for Federal Direct Graduate Unsubsidized Loans): $560.39
Payoff Time: 10 years
***Add an EXTRA payment each month of $125 profit earned from Steemit
Payoff Time: 8 years
So, I can pay off student loans 2 years sooner thanks to Steemit just by making a modest extra payment?!? Count me in! Now go ahead and Steem away your student loans too!!
