Paid it off themselvesStudent loans$80,000
How Kelsey Paid Off $80K in Student Loans by Reselling Thrifted Clothes
Kelsey Mikula began reselling thrifted clothes as a side hustle and soon earned more from it than from her hospital admin job. The income helped her pay off about $80,000 in student loans in three years.
Video by Good Morning AmericaPublished March 22, 2025Breakdown updated September 15, 2026
“Woman pays off student debt by reselling used clothes” by Good Morning America. We didn't make this video; it loads from YouTube when you press play.
Where Kelsey started
Kelsey Mikula, 27, had about $80,000 in student loans and an administrative job at a hospital. She had been reselling since she was a girl couponing with her grandmother, and she found that thrift flipping online paid more than her day job.
What Kelsey did
- 1
She started reselling thrifted items online as a side hustle while working in hospital administration.
- 2
At local thrift stores she goes through items one by one and checks what similar pieces sell for online before deciding what to buy.
- 3
She photographs each find, lists it on resale sites, then ships it when it sells.
- 4
The profits helped her pay off about $80,000 in student loans in three years.
- 5
Reselling became her full-time job, and she shares her process online.
What you can learn from it
Research comes before buying
Kelsey looks up what an item sells for before she picks it up, so she spends only on pieces she expects to be worth her time.
Start with what's already at home
Her advice for beginners is to go through their own belongings first, before buying anything to resell.
Resale income has to be reported
The IRS lists selling goods online as gig work, and says gig economy income must be reported on a tax return even if it's side work or isn't reported on a form like a 1099-K.
Extra loan payments carry no penalty
The CFPB says all student loan borrowers have the right to make extra payments at any time, without any fees or penalties.
In their words
“I was making more money reselling thrifting items and selling them online for profit than I was working an administration job at a hospital.”
“Go through your own personal belongings and get started.”
Before you copy this path
Kelsey's reselling grew into a full-time business with results most side hustles won't match, and it takes time, space and cash for inventory. The segment doesn't say whether her loans were federal or private.
Watch out: It needs a steady monthly budget, and nobody negotiates for you.
Build your own payoff planCommon questions
Is money from reselling clothes online taxable?
The IRS lists selling goods online as gig work, and says gig economy income must be reported on a tax return even if it's part-time or not reported on a form like a 1099-K.
Source: irs.govCan side hustle money go toward student loans at any time?
Yes. The CFPB says all student loan borrowers have the right to make extra payments at any time, without any fees or penalties.
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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