How Refinancing Helped Me Pay off $60K in Student Loans

By Ellie Chatman | Published on October 21, 2025

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When I graduated from Lewis & Clark College with my Bachelor’s in English, I did all the financially responsible things you’re supposed to do. I got a job in my field with a steady income, I drove my 15-year-old car instead of getting a new one, I split rent with roommates, I budgeted, and I paid more than the minimum on my student loans.

But after a year and a half of chipping away at my $60k in loans, I noticed that my balance hadn’t gone down very much. I finally did the thing I was dreading and avoiding: I sat down and did the math. With 8-9% interest rates, multiple federal loans with different lenders, and what I was able to pay each month, I found out it would take decades to pay them all off*. And I would lose a lot of money to interest. So I started researching and I learned a bit about student loan refinancing.

*Individual results vary.

Refinancing versus student loan forgiveness

A quick aside: at the time, student loan forgiveness wasn’t even close to a reality. For borrowers today, I understand keeping tabs on the forgiveness programs to see if your loans could be forgiven. I think it’s smart to weigh all your options and take advantage of every opportunity.

Personally, I didn’t want to leave my finances up to chance. I wanted to have control over my future. I knew that refinancing meant giving up any chance for forgiveness, but it was worth it for me. I’m confident that I saved more money by refinancing and paying off my loans faster than I would’ve if I had waited for forgiveness.

How refinancing helped me lower my monthly payments

After a little research and comparison shopping, I decided to refinance all of my student loans ¹ with Earnest. The process was straightforward and there was plenty of education about refinancing federal student loans and what that meant. I was able to consolidate all my loans into one and lower my interest rate to 5.5%*, which helped me save on interest². I also set up the highest monthly payment I could afford and built my budget around that. My only goal was to pay off my debt as quickly as possible, so I prioritized it.

*Individual results vary.

How Auto Pay for student loans helped me save money and avoid stress

Two years later, when I got a better-paying job, I refinanced again with Earnest (pro tip: you can refinance more than once) to get an even shorter term and I put every extra bit of cash I had into my student loans. With every raise, I’d increase my monthly payment amounts. I was really careful about lifestyle creep – I wanted to keep my living expenses the same so I could tackle my student loans faster.

I also had Auto Pay³ set up for the discount and so I didn’t have to think about my loans (in a good way). It really helped reduce my anxiety and stress around them. I knew I was on track to pay them off and I just needed to power through it. I realize it doesn’t sound very fun, putting it that way, but I wanted financial freedom more than anything. And I still allowed myself to spend a little and have fun, just in moderation (think cheap beer instead of expensive cocktails).

A few years later, when I was looking for a new job, I came across Earnest on a job board and immediately applied. They helped me save so much on my student loans and I wanted to help others do the same. Within a few weeks, I started at Earnest and found that it was filled with people like me – people who cared and wanted to help as much as possible.

Paying off all my student loans in less than a decade

Late last year, I celebrated my last student loan payment. I’m extremely grateful that I was able to pay off my student loans in a little over 7 years. It definitely took a lot of work, but the relief I feel is invaluable. Now, I can save up for other life goals, like traveling and buying a house.

About the Author

Ellie Chatman

Ellie Chatman is the Senior Copywriter at Earnest. She’s not only part of the team–she refinanced her own student loans with Earnest. Her firsthand experience fuels her desire to educate and empower others. Ellie’s goal is to help students and grads understand all their options so they can set themselves up for a successful future.

Disclaimer

The opinions expressed by the interview subjects are not necessarily those of Earnest. This blog post provides personal finance educational information, and it is not intended to provide legal, financial, or tax advice.