How We Eliminated $161,000 in Student Loans in 16 Months

Hello! Today I’m sharing an inspiring debt payoff story from reader Kristin Burton. She eliminated $161,000 in student loan debt in 16 months and recently paid off her mortgage. Below is her story.

In 2016 I completed graduate school with $161,000 in student loan debt.

That six-figure balance created more stress than I expected.

I started my career as a Physician Assistant and was thrilled to have a salaried position.

But I quickly realized it would be nearly impossible to get ahead financially with minimum student loan payments of roughly $2,000 per month for the next decade.

Even though student loans are common for graduate degrees, I felt a lot of shame about my balance when everything was said and done.

My husband came into our marriage debt-free, so the financial burden was entirely my responsibility.

Instead of dwelling on it, my husband and I made a plan to eliminate the loans.

We decided to pay off my loans as quickly as possible.

How we paid off my student loans quickly

We elected to live on my husband’s income and dedicate my entire income to paying the student loans. I figured it would take two to three years, which still felt fast.

We kept expenses extremely low, especially major overhead costs. We drove our old, paid-off cars from college — my $4,000 Chevy Cobalt got me to work for years. We limited travel, stayed local when we did go away, and rarely ate out.

Once the first high-interest loans were paid, I began to see real progress and felt hopeful. It became clear the debt was doable.

I became determined to finish even sooner. I took on four part-time PRN positions and was consistently working at least 80 hours per week. I scheduled the highest-paying shifts first and filled in additional shifts as needed.

At one point I worked twenty-one 12-hour day shifts in a row. I picked up evenings, nights, and weekend shifts. While I worked long hours, my husband handled the housework, cooking, laundry, and grocery shopping.

We sacrificed free time and short-term comforts. Sixteen months later, the $161,000 in student loans was gone. We were elated and still couldn’t quite believe it.

Working those hours paid off in non-financial ways too. I gained experience quickly as a new PA; more hours in the field accelerated my competence. I also learned gratitude and how to enjoy low-cost alternatives: date nights became home-cooked meals and wine on the deck, nights out became game nights with homemade pizza. I still wanted occasional treats, but I stopped obsessing over them and learned to enjoy the journey.

Paying off the loans was an easy decision for us. Most of my loans were private with interest rates above 9%, so interest costs were crushing. I briefly considered refinancing but decided it made more sense to pay them off quickly rather than incur refinancing costs for only a few years of relief.

During the payoff period my primary focus was removing a large monthly payment that limited our ability to save and do things like travel. I treated each month as a step toward that goal rather than following a long-term financial philosophy at first. That mindset has changed over time, but closing the large monthly bill was the immediate priority.

How we paid off the mortgage

After the student loans were gone, our remaining debt was the mortgage. We bought our house in 2014 while I was still in grad school, on one income. We wanted to put 20% down and purchased a foreclosure that needed work, which kept the mortgage affordable.

We began making quadruple payments in early 2019. The monthly debt load was far less intense than during the student loan payoff. I stopped working 80+ hours a week but still picked up some extra shifts. We continued investing 18–20% of income toward retirement, and we still allotted some money for fun.

We traveled to Italy, Belize, and Las Vegas (before the pandemic), and replaced our old cars with better used vehicles paid for in cash. I remember the surprise on the dealer’s face when two twenty-somethings declined financing and bought a car with a cashier’s check.

We also saved to pay cash for a major remodel — kitchen, dining room, and mudroom — in the spring of 2020. The $30,000 project was paid in full before demolition began.

After the remodel we realized we were closer to paying off the house than expected. We decided to finish the mortgage that year. I temporarily increased my hours again and worked long blocks of shifts. My husband boosted his productivity bonuses and we applied the extra earnings toward the mortgage. In August 2020 we became completely debt-free, including the house. Owning everything outright, from our home to our cars, created an incredible sense of peace.

Choosing to pay off a mortgage early is personal and debated in finance circles. Our mortgage rate wasn’t high and investing might have produced better returns mathematically. We chose mortgage payoff for two main reasons:

To reduce our overall financial risk
To lower monthly bills so we could invest a larger share of income going forward

With no debt and solid savings, we could both lose our jobs and live comfortably for at least a year — a comforting thought during a global pandemic. Now freed from debt, we plan to invest aggressively. We committed to investing at least 50% of our taxable income. That’s possible because our monthly obligations now only include taxes, insurance, and utilities. At ages 29 and 30, we have decades for those investments to compound toward a stress-free retirement.

How my view of money has changed

My mindset around money has shifted. My goal is no longer short-term cash each month. Instead, I focus on annual savings rates and tracking net worth over time. Every month matters, but I now prioritize long-term progress.

I’ve read about wealth stewardship and financial independence and now see money as a tool to design a meaningful life rather than simply a way to buy stuff. The progress we’ve made gives us confidence to pursue future goals, and my sense of what’s possible keeps expanding.

Everyone’s financial journey is different. Personal finance is personal. Whether you prefer paying off a mortgage early, investing instead, or a mix of approaches, the principles of our story can help.

Get Organized

Start with a budget. For me that began simply and evolved into a spreadsheet tracking net worth, asset allocation, savings rate, and income diversification. Don’t ignore your finances — track expenses in detail, set short- and long-term goals, and align your monthly budget with them. Celebrate milestones, even small ones, in affordable ways.

Pay Off High-Interest Debts First

High-interest debt, like credit cards and expensive auto loans, makes it hard to make progress. Tackle these first, even if it requires short-term sacrifices. We used the “debt avalanche” method, paying highest interest loans first, then moving down. Another option is the “debt snowball,” where you clear the smallest balances first. Clear credit card debt as a priority and maintain steady monthly progress.

Net Worth Tracking

Tracking net worth was a powerful mental tool during the payoff. When you work long hours and send most income to debt, your bank balance won’t grow — but your net worth can, because liabilities fall as debt is paid. Watching net worth rise, even slowly, provides motivation. I still remember when our net worth turned positive — it was a meaningful milestone.

Purchase A Less Expensive House Than You Can Afford

We bought a house we could afford on one income and put 20% down to avoid private mortgage insurance. In affordable areas of the country this is possible and frees up money for other priorities. We chose a fixer-upper and made it our own; choosing a more expensive home would have delayed mortgage freedom.

Don’t Forget Retirement

Whether you pay off a mortgage early or invest instead, save at least 15–20% of income for retirement. Paying off a mortgage can take years, and missing out on retirement compounding is costly. Contribute consistently to retirement accounts, then make extra mortgage payments or invest more as you can.

Automate The Process

From 2019 we made recurring quadruple mortgage payments through our loan servicer, making sure extra amounts went to principal. Automating payments and savings reduces reliance on motivation and keeps you accountable. Set up automatic transfers for debt reduction, savings, and investing so the right actions happen by default.

Find Ways To Increase Your Income

Your income fuels future wealth. Look for short-term and long-term ways to increase it. Short-term for me meant extra shifts to hit payoff goals; long-term meant changing jobs for a higher base salary. Often you can increase income without extra degrees — be creative and explore options.

Now that we’re debt-free, we’re pursuing financial independence — the ability to live off investments and be work-optional. By saving at least 50% of our take-home pay, we expect to reach this goal within about 15 years. I look forward to flexibility and using time for purpose rather than income. Paying off all our debt makes that possible.

If you’re at the start of your financial journey, take heart. It’s the small daily choices that add up and make the biggest difference.

About the author: Kristin Burton is the founder of Strive Coaching, a financial coaching company and personal finance blog. She is a pulmonary/critical care PA who, through her experience with heavy student loan debt, developed a passion for helping others with money. Her goal is to change how millennials approach finances.

Are you trying to pay off your debt? How is it going?