Student Loans for Millennials:  How I Plan to Keep $23,000 (of Interest) Rather than Pay Lenders

It’s that time of year when I do my taxes and nearly puke because 63% of my student loan payments went to interest and I got back less than one month’s payment on my taxes. I’m pissed! Student loan interest rates are insane! You cannot avoid paying your student loans unless you die. The government will get their money for your student loans one way or another. Are the interest rates reflective of the government’s risk? Absolutely not! It is either pay voluntarily or they will take it.

MacBook Pro, white ceramic mug,and black smartphone on table

Student loans are sold to young people as the way to the American Dream. Education opens doors. Get a degree and get a great job. Schools gladly tell students that they can take out extra money for living expenses without educating students of the future impact. Why should colleges educate students to be financially responsible and make smart choices? It would hurt their business.   The cost of tuition has increased at a faster rate than salaries!

According to, tuition increased 140.1% between 1971 and 2016 while the median income for women increased 73.7% (let’s be honest more women are working in 2016 so that number is a bit skewed) and the median income for men actually decreased 5.4%. The median income DECREASED for men!

Check out The Minimalist Podcast about student debt to get even more fired up.

Kasasa could not have said it better when they summarized what is on Millennials’ financial horizon.

“Millennials are entering the workforce with high amounts of student debt. This is delaying major purchases like weddings and homes. Because of this financial instability, Millennials prefer access over ownership which can be seen through their preference for on-demand services. They want partners that will help guide them to their big purchases.”

Who is responsible for these tuition increases? Not millennials because we are sitting over here plotting about the next thing that we are going to kill since we killed napkins and MBA programs, ruined real estate because we can’t buy a home, destroyed love since we delay getting married, and just trying to find a way to make enough money to pay our bills.

Baby boomers are the problem. I said it. Baby boomers are running colleges and universities.  The average age for a president of a college or university in America is 58.  If you are 58 in 2019, that means you are in the baby boomer generation.

A 2012 study by the American Council on Education (ACE) found that the age of the average university president was sixty-one, up from fifty-two two decades before. More than half (58 percent) of presidents were over the age of sixty, up from 13 percent in 1986.

Source:  American University

Baby boomers are responsible for this whole mess. Instead, they point the finger at millennials and call us lazy. Baby boomers frivolously spent money while working at colleges and universities, stuck millennials with the bill, and a fed us a line of bullshit!

Guess what baby booming bank executives and student loan lenders! I plan to ruin your projections by $23,000 because I am paying off my student loans early!

three assorted U.S. dollar banknotes

So really, who killed napkins? Baby boomers because millennials don’t have enough money to buy them.

How am I planning to not pay $23,000? Easy. I am entering my second year of a no-spend challenge that was inspired by Cait Flanders’ book The Year of Less. I have a list of essential items that I can purchase, a list of approved items I could purchase, and everything else is off limits. Check out this year’s list on a recent blog post.

By continuing my no-spend challenge for the next three years, I will keep rather than pay my student loan lender $23,000 and pay off my student loans 15.5 years early!

If baby boomers think for one minute that I am some lazy millennial they have another thing coming. I am currently in the process of keeping rather than paying my car loan lender $4,000 in interest by paying my car off 5 years early. Why? Because I am tired of being a broke millennial. I am tired of saying I don’t have money. I am tired of the old and frankly terrible ways that I was taught to manage money. I am tired of the old narratives I learned. I am tired of being a slave to debt.

I am one badass millennial who is going to join thousands of other badass millennials and pay off debt early!

Care to join the badass millennial movement? Comment below on how much interest you can save by paying off debt this year!

2 thoughts on “Student Loans for Millennials:  How I Plan to Keep $23,000 (of Interest) Rather than Pay Lenders

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