Harvard Business School Grad pays off $100K Student loan in 7 months

[aadam101]

http://management.fortune.cnn.com/2012/05/16/student-debt-business-school/?section=magazines_fortune

[BobWang]

Nobody thinks twice about taking an international vacation -- they just go.

Especially when it's MY card.

[hegemony]

to be clear, in part he sold assets to pay off a liability.

 

To earn extra money, he sold his second car and a motorcycle, rented his spare bedrooms to strangers through Craiglist, and started a side business doing landscaping work. Quickly, he chipped away at his debt. To start, he liquidated his IRA account for $8,000, sold stock worth $14,000, and used about $3,000 of available cash to wipe out one loan. Within seven months, he managed to make his final payment and rid himself of all his debt in March of this year -- three months ahead of his goal.

 

strange selling a car is considered "earning extra money"

 

Don't get me wrong, good for him. Also, he paid it off is 7 years and 7 months...not 7 months.

[aadam101]

to be clear, in part he sold assets to pay off a liability.

 

To earn extra money, he sold his second car and a motorcycle, rented his spare bedrooms to strangers through Craiglist, and started a side business doing landscaping work. Quickly, he chipped away at his debt. To start, he liquidated his IRA account for $8,000, sold stock worth $14,000, and used about $3,000 of available cash to wipe out one loan. Within seven months, he managed to make his final payment and rid himself of all his debt in March of this year -- three months ahead of his goal.

 

strange selling a car is considered "earning extra money"

 

Don't get me wrong, good for him. Also, he paid it off is 7 years and 7 months...not 7 months.

 

"

On March 29, after seven months of discipline and patience, he made his final payment on the debt. Mihalic says he then had to ask his roommates for their rent a few days early so he could meet his mortgage payment three days later.

"

 

It was 7 months.

 

 

 

[hegemony]

to be clear, in part he sold assets to pay off a liability.

 

To earn extra money, he sold his second car and a motorcycle, rented his spare bedrooms to strangers through Craiglist, and started a side business doing landscaping work. Quickly, he chipped away at his debt. To start, he liquidated his IRA account for $8,000, sold stock worth $14,000, and used about $3,000 of available cash to wipe out one loan. Within seven months, he managed to make his final payment and rid himself of all his debt in March of this year -- three months ahead of his goal.

 

strange selling a car is considered "earning extra money"

 

Don't get me wrong, good for him. Also, he paid it off is 7 years and 7 months...not 7 months.

 

"

On March 29, after seven months of discipline and patience, he made his final payment on the debt. Mihalic says he then had to ask his roommates for their rent a few days early so he could meet his mortgage payment three days later.

"

 

It was 7 months.

 

my mistake. He paid for 21 months and then 7 months

Edited May 17, 2012 by hegemony

[hegemony]

I wonder if he considered the tax deduction at his income level for some SL interest. I'll have to read his blog. thanks for the link.

[Crashem]

A car and motorcycle may be assets but depreciating assets. Good for him

[hegemony]

A car and motorcycle may be assets but depreciating assets. Good for him

 

an IRA and investments were liquidated too. I hope he figured in the tax issues assuming the investments had gains and the IRA included deductible contributions.

[beli]

A car and motorcycle may be assets but depreciating assets. Good for him

 

an IRA and investments were liquidated too. I hope he figured in the tax issues assuming the investments had gains and the IRA included deductible contributions.

I'm sure he did.. I'm also sure he probably figured once his student loans were paid off,he'd throw that money back into his Ira.