Student Loan Repayment Strategy: Pay Off $80K in 3 Years

The average nursing school graduate carries $40,000-80,000 in student loans. Travel nursing’s high income can eliminate that debt in 2-4 years—if you’re strategic about it.

Here’s your student loan payoff playbook.

The Travel Nurse Advantage

Staff Nurse Math

• Salary: $75,000
• After taxes/expenses: $48,000
• Available for debt: $10,000/year
• Time to pay $80K: 8+ years

Travel Nurse Math

• Income: $115,000
• Tax-free stipends: $30,000
• After taxes: $85,000
• Available for debt: $35,000/year
• Time to pay $80K: 2-3 years

Travel nursing can cut payoff time by 60-70%.

Step 1: Know Your Loans

Federal Loans

Private Loans

• Rates: 4-12% (variable or fixed)
• No federal forgiveness options
• May refinance for lower rates

Step 2: Choose Your Strategy

Strategy A: Aggressive Payoff

Best if:

• Interest rates above 6%
• You want debt freedom
• Peace of mind matters
• Private loans (no forgiveness option)

Method:

1. Minimum payments on all loans
2. All extra money to highest-rate loan
3. Repeat until paid off

Strategy B: PSLF Pursuit

Best if:

• All federal loans
• Can qualify for non-profit work
• 10 years feels manageable
• Lower payment = more investing

Caution for travelers: PSLF requires working for qualifying employer. Most travel nursing agencies don’t qualify. Hospital direct-hire or staff positions do.

Strategy C: Balanced Approach

Best if:

• Mix of high and low-rate debt
• Want to invest simultaneously
• Moderate risk tolerance

Method:

1. Pay high-interest loans aggressively
2. Minimum on low-interest (<5%)
3. Invest the difference

Step 3: Build Your Payment Plan

Example: $80,000 Debt at 6% Average

Minimum payments only:

• Monthly payment: ~$900
• Total interest: ~$27,000
• Payoff time: 10 years

Aggressive travel nurse plan:

• Monthly payment: $3,000
• Total interest: ~$6,500
• Payoff time: 28 months

Interest saved: $20,500

Payment Allocation

After covering necessities:

Step 4: Optimize Your Income

For Faster Payoff

• Take high-paying contracts
• Work overtime strategically
• Extend at good assignments
• Minimize time between contracts

Housing Strategy

Pocket the housing stipend difference:

• GSA stipend: $2,500/month
• Actual rent: $1,200/month
• Extra for debt: $1,300/month = $15,600/year

Refinancing Considerations

When to Refinance

Yes if:

• Good credit score (700+)
• Stable income
• Don’t need federal protections
• Can get significantly lower rate

No if:

• Pursuing PSLF
• Need IDR flexibility
• Credit issues
• Variable rate seems risky

Refinance Impact

Before: $80K at 6.8%

• Monthly: $920
• Total paid: $110,400

After refinance: $80K at 4.5%

• Monthly: $826
• Total paid: $99,120

Savings: $11,280

Loan Forgiveness Options

PSLF (Public Service Loan Forgiveness)

Requirements:

• Work for non-profit or government
• Direct federal loans
• 120 qualifying payments
• IDR repayment plan

For travel nurses: Generally doesn’t qualify—agencies are for-profit. But consider:

• Staff position at non-profit hospital
• Working for VA or government facility

NHSC/NURSE Corps

Requirements:

• Work in shortage areas
• 2-3 year commitment
• Specific program requirements

For travel nurses: Some rural assignments may qualify. Research specific programs.

IDR Forgiveness (20-25 years)

How it works:

• Pay income-driven percentage
• Remaining balance forgiven
• May have tax consequences

For travel nurses: Not ideal—high income means high payments. Better to just pay off.

Pay Off vs. Invest Calculator

The Math Question

Should you pay off 6% loans or invest for 7% returns?

Mathematical answer: Invest (higher expected return)

Psychological answer: Pay off (guaranteed return, peace of mind)

Balanced answer:

• Pay off anything above 6% aggressively
• Below 5%: Consider investing
• 5-6%: Personal preference

Example Comparison

$50K over 5 years at 6%:

• Aggressive payoff: $0 debt, ~$3K interest paid
• Minimum + invest: $25K debt remaining, $35K investments

Long-term, investing often wins mathematically. But debt-free living has value.

Sample 3-Year Payoff Plan

Year 1

Months 1-6:

• Build 3-month emergency fund ($15K)
• Minimum loan payments only
• Get established in travel nursing

Months 7-12:

• $3,000/month to loans
• Pay off highest-rate loan
• Total paid: $18,000

Year 2

Full year:

• $3,500/month to loans
• Attack remaining loans
• Total paid: $42,000

Remaining debt: ~$20,000

Year 3

Months 1-6:

• $3,500/month to loans
• Total paid: $21,000
• DEBT FREE

Months 7-12:

• Redirect to investments
• Build wealth

Key Takeaways

• Travel nursing can cut payoff time by 60-70%
• Know your loan types and interest rates
• High-rate debt (>6%): Pay aggressively
• Low-rate debt (<5%): Consider investing instead
• Housing arbitrage frees extra payoff money
• PSLF rarely works for travel nurses
• $80K paid in 3 years is realistic with dedication