4 Things I Learned Paying Off $30,000 in Student Loan Debt
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Saddled with thousands in debt and no way to pay it off, I faced the reality of asking my mother to help with debt payments -- a humbling moment that helped change my life. Here are four crucial lessons I learned during my debt payoff journey.
Written by Veneta Lusk Last Updated: April 1, 2025 Reviewed by Zina Kumok Veneta Lusk | Becoming Life SmartThese days, it is common to graduate with student loan debt.
If you’re among the 2021 graduating class, you may find comfort in knowing that your peers are straddled with an average $36,900 in student loan debt, according to the most recent data.[1] I graduated from college more than a decade ago, but my results were very similar.
When I walked across the graduation stage to receive my diploma, I could almost picture the tumbleweeds blowing through my bank account. On top of that, I was now the proud owner of a $26,000 student loan balance - plus the $4,000 I owed on my credit card. To say that I was financially unprepared for post-grad life financially unprepared for post-grad life was an understatement.
With my shiny new degree in hand, I packed up my belongings and moved back into my parents’ house. Buoyed by the knowledge that I wouldn’t need to start paying back my loans for another six months, I began my job search.
I was happy to find a job in my field and was pretty sure that everything would work out just fine for me. I hadn’t told my parents about my credit card debt, but I was able to scrape together just enough to cover the monthly minimum payment.
My parents had always taught me to be responsible with credit cards and had given me one in high school so that I could build my credit. They gave me a spending limit and paid off the balance for me every month. But that lesson in responsibility obviously went in one ear and out the other.
Good Judgement Comes from Experience
There’s a saying that goes, “Good judgment comes from experience; experience comes from poor judgment.” While some people can learn from others’ mistakes, I seem to learn best by making my own.
I was 16 when I got my first job, and I bought my first car shortly after that. My newfound freedom was intoxicating. Like most teenagers, I felt like having my own set of wheels and a little spending money meant that the world was mine for the taking.
I’m a spender by nature. Thanks to new clothes and shoes, and evenings out with friends, my money was gone as soon as it hit my bank account. Since I pretty much always had a job after turning 16, my spending wasn’t much of an issue…at first.
Although I was spending money in my late teens, my purchases were always limited by my paycheck. I put little thought into saving or investing my income. Money was meant to be enjoyed, and I tried my best to do just that.
When it was time to apply for college, I ignored the more affordable in-state schools in favor of options that would take me to new places. Although attending an out-of-state university meant a greater financial burden for both my parents and me, taking on student loan debt felt like the norm. In my mind, I would graduate with a four-year degree, get a job, and take steps to pay off debt just like everyone else.
Hitting Rock Bottom
When all was said and done, my portion of my college bill was a little more than $26,000. This was in addition to the loans that my parents had covered to fund my education. And I had also managed to rack up that $4,000 credit card debt, don’t forget.
For the first few post-college months, I was able to cover the minimum payments on my credit card bill with whatever money I had left in my bank account, but I couldn’t sustain that practice without an income. At that point, I wasn’t even thinking about my student loan debt, since I didn’t have to start repayment until the following January.
Even though I applied to open positions and sent out resumes on a daily basis, I wasn’t having any luck with my job search. While living at home was free, I didn’t have any spending money. I was just trying my hardest to keep my parents in the dark about my credit card debt.
When the next credit card statement came in the mail, I realized that there was no way I could afford the minimum payment. I finally had to face reality: I would have to ask my parents to bail me out.
After my panic faded, I got up the courage to explain the situation to my mother. It was one of the hardest conversations I have ever had with her and was a turning point in my personal finance journey.
Learning About Debt the Hard Way
My mother wasn’t happy about my debt, but she agreed to help me out - on the condition that I find a job as soon as possible. She wanted me to pay off my debt as quickly as I could, and to use my money troubles as a learning experience.
We also agreed that I would pay her back as soon as I started earning money. After being on my own in college for four years, crawling back to my parents was a tough pill to swallow. But looking back, I am very glad that I learned this lesson early on.
With credit card debt hanging over my head, I found a job that was semi-related to my degree. Although I didn’t particularly like it, it paid well enough for me to make a dent in my debt. During the next few months, I threw as much money as I could at my credit card bills.
In the meantime, I began researching personal finance and learning the basics of managing my money. Even though I had my college degree in hand, I was woefully unprepared for the challenges of the real world. I scoured websites, blogs, books, and personal finance podcasts to learn as much as I could about financial responsibility.
After being forced to move back in with my parents and ask them for money, I vowed to regain my independence. My debt was just the kick in the pants I needed to take charge of my finances and never look back.
Related: Should Parents Pay for Their Children’s College Education?
Four Lessons I Learned Graduating with $30,000 in Debt
Financial education is still severely lacking in both high school and college curriculums. While students learn how to solve complex math equations and write essays, most are never taught basic money skills like how to make a budget.
I was forced to change my mindset after growing up thinking that debt is normal and money is meant to be spent. This took a lot of research and hard work, but it was well worth it. Here are the lessons I learned after graduating from college with $30,000 in debt.
1. Every dollar has value
One of the first things I did was look through my old credit card statements. After racking up so much debt, I wanted to see how I had spent my money and what I had to show for it.
After inspecting one credit card statement after another, I came to a shocking conclusion: I had nothing to show for all of my spending. Most of my money had gone toward drinks, eating out with friends, and clothes that I no longer wore.
This realization made me reevaluate my money and spending habits. I didn’t particularly like the job I was working, and it was a wake-up call to realize that all of my paychecks were going to my past, frivolous spending.
Pouring my entire income into paying off debt changed how I thought about money. It fueled my newfound interest in personal finance and helped me understand how to manage my money the right way.
This turning point completely changed my life. Had I not graduated with so mu
Final Thoughts
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Originally published at dollarsprout.com.
Veneta Lusk
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