Paid it off themselvesStudent loansAbout $20,000
How NiaChloe Paid Off Nearly $20,000 in Student Loans in 16 Months
NiaChloe Bowman paid off nearly $20,000 in student loans 16 months after graduating. She listed every debt, automated payments from a separate bills account, and explains why refinancing federal loans can cost you their protections.
Video by Good Morning AmericaPublished February 18, 2026Breakdown updated September 15, 2026
“Woman digs out of nearly $20,000 in debt” by Good Morning America. We didn't make this video; it loads from YouTube when you press play.
Where NiaChloe started
NiaChloe Bowman had roughly $20,000 in student loans from Babson College in Massachusetts. In an accounting class she worked out that a standard 10-year repayment plan could add about $5,000, and the number scared her. She decided while still an undergraduate to make payoff a priority, and finished 16 months after graduating in 2019.
What NiaChloe did
- 1
She wrote all of her debts down so she could see the full picture.
- 2
She split her money into a bills account, a personal spending account and two savings accounts.
- 3
She linked automatic loan payments to the bills account.
- 4
She raised her payments above the minimum in small steps over time.
- 5
She put extra money toward the principal balance and chose not to refinance her federal loans.
What you can learn from it
Price out the long way first
Seeing that a 10-year plan could add about $5,000 is what pushed her to act. Borrowers can run the same comparison with their own balance and rate.
A separate bills account keeps autopay simple
She linked automatic payments to an account used only for bills. Federal Student Aid also offers an interest rate reduction on eligible federal loans for borrowers enrolled in automatic payments; the current terms are on StudentAid.gov.
Make sure extra payments reach principal
She aimed her extra money at principal. The CFPB says servicers may apply extra money to a future payment unless the borrower asks for it to go to principal.
Know what refinancing federal loans gives up
She chose not to refinance her federal loans. Federal Student Aid says refinancing into a private loan can mean losing deferment and forbearance, income-based repayment plans and federal forgiveness options.
Before you copy this path
She had a fairly small balance and started planning while still in school, which not everyone can do. Borrowers who may qualify for Public Service Loan Forgiveness or an income-driven plan might reasonably choose a different path.
Watch out: It needs a steady monthly budget, and nobody negotiates for you.
Build your own payoff planCommon questions
What do you lose by refinancing federal student loans into a private loan?
Federal Student Aid says borrowers who refinance into a private loan may lose access to deferment and forbearance, income-based repayment plans, and forgiveness or discharge options such as Public Service Loan Forgiveness.
Source: studentaid.govDoes autopay lower the interest rate on federal student loans?
Federal Student Aid offers an interest rate reduction for borrowers enrolled in auto pay on eligible Direct Loans. The size of the reduction and the enrollment deadlines have changed recently, and current terms are posted on StudentAid.gov.
Source: studentaid.govHow do I make sure extra student loan payments go to principal?
The CFPB says servicers often credit extra money toward a future payment rather than the loan balance. Borrowers can contact their servicer to ask that extra payments go to principal, and keep records of those requests.
Source: consumerfinance.govSources
By DebtCheckUSAEditorial Team. This is our summary of a video we didn't make, and nobody paid us to include it. It's one person's experience, not financial, tax or legal advice. Advertiser disclosure
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