Can you settle $90,000 student loans in just 7 months? It is sound impossible ( I’ve a 15K loan and still not finished after 10 years..) but Joe Mihalic from Austin Texas did it. His student debt is from his days at Harvard Business School. The 29 years old men has become an Internet celebrity as a financial advisers. He also make a blog called No More Harvard Debt to share his experience of the mission to accomplished the debt. The story has become follow by young Americans that are get more debt in education loan.
How did he settle the debt? Mihalic has work for Dell Inc and get low six figure salary which is one reason he can paid. But it ain’t enough to settle the debt, he also getting roommates to decrease the house rent, get a second job which he get landscaping job, forget all restaurant dining, selling all unnecessary items around the house and getting a flask. Mihalic spent months taking a flask of liquor to bars so he could continue to go out drinking with friends without running up a tab ( this is illegal and I recommend not take a drink, it will save more).He also not go to cinema but hiking for dates.
He take protein bars packed from home and walked several miles to the city to save from transportation expenses. He get two roommates to rent out his house. He also stop his individual retirement account, get a tax penalty and stopped contributing to his 401(k) to solve his student loans as quick as possible. He saved $40K in interest that he would paid if stayed on the 15 year schedule for repayment of his loans. He made the last settlement last week ago.
He says he learned other lessons, too.
“The flask thing, it’s kind of demeaning,” he says. “The funny thing is that girls weren’t really sketched out by it…They did laugh, and I could still get their phone number. It taught me a lot — you don’t have to be this flashy dude, buying drinks.”
Reference :- Yahoo Finance
This is such an inspiring by a young American on how to settle the 5 figure loans. Maybe I’ll try some of method to solve my student loan that balance of 8,600. It is still small amount that what Mihalic debt and he can solve just in 7 months. If you think your student loan is too expensive to pay, why don’t you make Mihalic as your mentor. It is more comfortable life without debt… Love his spirit.