Entering the challenging phase of adulthood and stepping into the job market for the first time while burdened with student loan debt can be an incredibly daunting experience. The reality of watching this debt grow due to interest rates as you progress through your 20s, 30s, 40s, and beyond can feel overwhelming and stressful. Many borrowers find themselves grappling with this financial weight, which can hinder their ability to achieve important milestones such as saving for emergencies, buying a home, or even starting a retirement fund.
This scenario is all too common for many borrowers. The government’s “standard” repayment plan spans a decade, yet numerous individuals find themselves enrolled in repayment plans that stretch for 20 years or even longer. If left unaddressed, the burden of student loans can significantly impact your financial health and delay your aspirations. However, with careful management and a strategic focus on paying off your loans more swiftly, you can minimize the interest accrued compared to those who only make minimal payments.
This article will provide insight into how four individuals successfully paid off their student loans in record time, demonstrating that it is indeed possible to take control of your financial future.
Strategies to Combat Lifestyle Inflation and Manage Debt Wisely

Erin and her husband, Mike.
Courtesy of Erin Adams Chanler
Introducing Erin and Mike: Their Journey to Financial Freedom
Meet Erin Adams Chanler, 35, a resident of Portland, Maine, whose financial journey reflects the challenges many face today.
Understanding Their Student Loan Debt Burden
- Private student loans: $87,667.07 through five loans with interest rates ranging from 7.59% to 12.63%
- Federal student loans: $13,161 through four loans with interest rates between 3.15% and 5.75%
- Total debt upon graduation: $100,828.07
Timeframe for Achieving Debt Freedom
6.5 years
Erin Adams Chanler’s upbringing in a blue-collar family provided her with limited guidance on effectively managing personal finances. “There was a lot of emphasis on the idea that if you work hard, you can achieve anything,” Adams Chanler recalls. “However, there was not enough focus on how to finance those aspirations.”
After attending a prestigious liberal arts college, she graduated in 2012 with approximately $100,000 in debt. A subsequent move to San Francisco for a non-profit position that paid only $40,000 added to her financial struggles. However, Erin discovered that avoiding the trap of “lifestyle inflation”—the tendency to increase spending alongside income—was pivotal in her strategy to clear her debt rapidly. Even as her salary rose from $70,000 to $130,000 during her career in tech, she chose to live in a less desirable neighborhood, sharing accommodations and enduring longer commutes. Additionally, she focused on cooking at home and restricted her travel, which she typically enjoys. At her peak, Erin was directing over $3,600 monthly towards her student loans.
Although isolating at times, especially as her friends in tech were enjoying more luxurious lifestyles, Erin persevered. “It was challenging to see the light at the end of the tunnel,” she reflects, until she managed to pay off her largest loan, which also had the highest interest rate. “That moment was incredibly rewarding.”
Looking back, Erin wishes she had been more open about her debt, feeling that vulnerability could have fostered understanding among friends and eased her decision to decline costly outings. Ultimately, she achieved her goal far quicker than many individuals typically do with a debt of $100,000.
“Carrying that level of debt can be burdensome, especially as a young adult just starting out,” Adams Chanler expresses. “I am profoundly grateful every day that I no longer have that financial weight.”
Mastering the Snowball Method for Debt Repayment Success

Meet Erik Vargas: A Commitment to Debt-Free Living
Erik Vargas, 32, who resides in Memphis, Tennessee, is a testament to the power of strategic debt reduction.
Breaking Down His Student Loan Debt Situation
- Federal student loans: $29,000 across nine loans with a capped interest rate of 6% thanks to the Servicemembers Civil Relief Act
- Total debt upon graduation: $29,000
Debt Repayment Timeline
3 years of dedicated effort (8 years total)
When Erik Vargas decided to marry Amanda, they quickly established a joint financial goal: to eliminate all their debts as swiftly as possible. With Erik still repaying his car, the bulk of their debt consisted of student loans.
Having made minimal payments on his $29,000 student loans since graduating five years earlier, Erik faced a daunting task. Amanda brought her own $47,000 in student loans into the marriage, prompting the couple to create a strict budget and adopt the snowball method. This approach involves making minimum payments on all debts while funneling any extra funds towards the smallest debt until it is cleared. The process continues by using the previous payment amount to tackle the next smallest debt, creating momentum towards a debt-free life.
As Erik worked for the Navy, he managed nine loans while Amanda had two larger debts, allowing them to see rapid progress. They benefited from the COVID-19 pandemic’s pause on federal loans, which temporarily eliminated interest. With typical social activities curtailed, they redirected the funds that would have been spent on leisure towards their loans.
By identifying essential recurring expenses—such as internet, rent, and cell phones—they allocated a budget for entertainment while directing the remainder to debt repayment. They still practice this method, now channeling those funds into savings for a future home. Additionally, they utilized stimulus checks from the government during the pandemic to accelerate their loan payments. Planning for fun activities, like a ski trip, involved saving up while ensuring progress on loan repayment.
Erik noted, “The last two significant loans were the toughest to work through.” Despite handling numerous smaller debts rapidly, the larger debts proved to be more challenging. “It felt like a slog towards the end.”
In 2023, Erik and Amanda finally celebrated their debt-free milestone, marking their achievement by appearing on popular personal finance guru Dave Ramsey’s radio show.
Finding Positivity Amidst Lifestyle Adjustments to Pay Off Debt
Introducing Evan Louey-Dacus: A Young Professional’s Journey
Evan Louey-Dacus, 23, based in New York City, embodies the determination of a new generation tackling student debt.
Breaking Down His Student Loan Debt
- Federal student loans: $11,000 (two loans with interest rates of 3.48% and 4.74%)
- Total debt upon graduation: $11,000
Timeframe for Debt Repayment
1 year and 1 month
After graduating with $11,000 in student loans, Evan faced a setback when his initial job offer fell through. With rent to pay and no income, he accrued interest on his loans for approximately four months before making his first payment.
By the end of 2023, Evan secured a new position in marketing for corporate events and began aggressively attacking his loans, allocating a quarter to a third of his paychecks towards debt repayment.
“Debt creates dependency,” Louey-Dacus asserts. “Having student loans meant I was reliant on the government, and I wanted to minimize that dependency.”
Growing up in a household of entrepreneurs, Evan was instilled with a strong sense of frugality, motivating him to eliminate his debt swiftly.
“I had to humble myself and accept that my life wouldn’t be extravagant until my loans were paid off,” Louey-Dacus reflects. For example, he set his heating system on a timer to limit costs. However, he also discovered the silver lining in these lifestyle changes: a newfound passion for cooking.
As Evan transitioned to homemade meals instead of dining out, he found joy in cooking, a skill that had not previously defined him. “Now that I had to cook regularly to stay within budget, I truly began to enjoy it,” he shares. “I didn’t view myself as a cook before, but now I do—and I don’t think I would have embraced this shift so quickly without the motivating factor of student debt.”
Ultimately, this passion for cooking paid off, as Evan recently completed his last debt payment.
Exploring Additional Income Streams and Refinancing Options

Courtesy of Brett Holzhauer
Introducing Brett Holzhauer: Balancing Lifestyle with Debt Repayment
Brett Holzhauer, 31, hailing from Fort Lauderdale, Florida, showcases a balanced approach to managing substantial student debt.
Understanding His Student Loan Debt Situation
- Private student loans: $72,669 with an interest rate of approximately 7%
- Total debt upon graduation: $72,669
Debt Repayment Journey Timeline
7 years
Upon graduating with nearly $73,000 in private student loan debt, Brett sought a balanced approach to rapid debt repayment without sacrificing his quality of life.
To generate additional income, he took on side gigs, including delivering groceries through Instacart, reselling items online, and engaging in freelance writing. At times, he earned up to $5,000 monthly through these efforts.
Another crucial factor in Brett’s successful debt repayment was refinancing—essentially replacing his existing loans with new ones that ideally carried lower interest rates.
“It’s not the total balance that’s the problem; it’s the interest rate,” Brett emphasizes.
His initial refinance occurred in 2016 with SoFi, reducing his interest rate from about 7% to 5.34% (notably, he later briefly worked for SoFi). Over approximately three years, he refinanced three additional times, ultimately lowering his rate to 2.2%. He even arranged an informal “refinance” when his father-in-law paid off his loans interest-free, although he had to repay that amount soon after his divorce. To settle the remaining debt, he secured a personal line of credit with a 2.25% interest rate.
“I started noticing the light at the end of the tunnel becoming brighter and realized I could strategically reduce my debt,” Brett shares. “I remained proactive, checking regularly for ways to minimize my obligations.”
Ultimately, he achieved his goal. Now, as a full-time writer specializing in small business for Biz2Credit, an online platform for small business financing, Brett has been free of student debt for several years. He successfully paid off his last loans just before turning 29, fulfilling his objective of being debt-free by 30 that he set upon graduation.
Editor’s note: While SoFi sponsored this story, Money independently reported and authored the content, including insights from a former SoFi employee, without any external influence.
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