How I Outsmarted My Student Loans Without Earning Six Figures

How I Outsmarted My Student Loans Without Earning Six Figures

A Journey of Discipline, Mindset Shifts, and Financial Grit

Growing up, I was told that education was the ticket to a better life. My parents, both hard-working and hopeful, believed that a university degree would unlock a future filled with opportunity. And so, I enrolled in university with great expectations, but I also took on student loans, not fully grasping the financial weight I was about to carry.

By the time I graduated, I owed over Ksh 1.2 million in student loans. I was not alone, many of my peers were in the same boat. But what set my story apart was the reality that I didn’t land a six-figure salary or some flashy job in a major city. I earned a modest income, just enough to get by. And yet, within seven years, I had managed to outsmart my student loans. This is how I did it.

Understanding the True Cost of Debt

When I saw my loan balance after graduation, it felt insurmountable. But instead of panicking or ignoring it, I took the time to understand exactly what I owed, what the interest rates were, and how long it would take to pay it off if I only paid the minimum.

It was eye-opening. Minimum payments barely touched the principal. I realised I could end up paying nearly double the original amount over time. That awareness was a pivotal moment. It changed my approach from reactive to proactive.

Starting Small, Staying Consistent

With a modest income, I didn’t have much wiggle room. But I knew consistency would be my greatest ally. I committed to paying slightly more than the minimum, even if it was just Ksh 2,000 extra each month. That extra bit, I discovered, made a significant difference over time by reducing the principal and, in turn, the interest.

I also made a promise to myself: no matter what, I would never miss a payment. That kind of discipline helped me build financial confidence. It felt empowering to take ownership of my debt instead of feeling enslaved by it.

Embracing a Frugal but Fulfilled Lifestyle

To create room in my budget, I had to reassess my lifestyle. I didn’t live in a trendy neighbourhood or eat out regularly. I cooked most of my meals at home and prioritised second-hand shopping. I walked instead of taking public transport whenever possible. I even shared accommodation with a friend to cut down on rent.

But I didn’t feel deprived. On the contrary, I discovered a certain joy in simplicity. My values shifted. I stopped chasing things and started cherishing experiences. Living below my means wasn’t a punishment, it became a form of quiet resistance against a culture of debt normalisation.

Utilising Windfalls Wisely

Whenever I received any unexpected money; bonuses, tax refunds, freelance earnings, I resisted the temptation to splurge. I directed those funds straight towards my student loans. One year, I used my entire December bonus to make a lump sum payment. It hurt, but it accelerated my progress more than I could have imagined.

Each windfall became an opportunity, not for indulgence, but for liberation. I saw every payment as buying back my freedom, one shilling at a time.

Side Hustling with Purpose

Though I didn’t earn a six-figure salary, I found ways to boost my income. I tutored part-time, sold digital products online, and occasionally picked up weekend gigs. These side hustles weren’t glamorous, but they were strategic.

Every extra coin was allocated to my debt. I treated my side hustle income like it didn’t exist for daily expenses, it had one job: to help me get debt-free. That separation kept me disciplined and made the effort feel worthwhile.

Tracking My Progress Religiously

I maintained a simple spreadsheet that tracked every payment I made, every reduction in the balance, and how much interest I saved by making extra payments. This visual representation became a source of motivation. On tough days, it reminded me how far I had come.

There’s power in seeing progress. It helped me develop a better relationship with money, one based on clarity and intentionality. It was no longer just about paying off debt; it was about creating a foundation for a future I could be proud of.

Avoiding the Comparison Trap

During my repayment journey, I often saw friends buying new cars, moving into stylish apartments, or going on lavish holidays. It was tempting to feel left out or to question my choices. But I reminded myself that my peace of mind was more valuable than appearances.

I wasn’t competing with anyone. My goal was freedom, not flash. And when I finally made my last payment, the sense of triumph was unmatched. I didn’t have a new car or designer clothes, but I had something far more valuable; peace, pride, and a clean slate.

Lessons Beyond the Loans

Paying off my student loans wasn’t just a financial journey, it was deeply personal. I learned discipline, patience, and resilience. I developed a habit of living below my means, which has continued to benefit me in all aspects of life.

More importantly, I learned to define success on my own terms. Society often ties success to income or material possessions. But for me, it’s about control over my finances, the ability to make choices without debt dictating them, and the confidence that comes from knowing I climbed out of a financial hole on my own.

A Word to Others in the Same Boat

If you’re facing student loans and don’t have a high-paying job, know that it’s still possible to make progress. Start where you are. Use what you have. Be consistent. Celebrate the small wins.

You don’t need to earn a fortune to change your financial future; you need a plan, a mindset shift, and the willingness to stick with it.

Outsmarting my student loans wasn’t about luck or privilege. It was about conscious choices, one after another, over time. And if I could do it, so can you.