A 28-year-old woman who once feared being buried under student loans is now sharing how discipline, planning, and smart financial habits helped her eliminate nearly $20,000 in debt in less than two years.
NiaChloe Bowman told Good Morning America that her journey began while she was still an undergraduate at Babson College.
“I had roughly $20,000 in student loan debt,” Bowman recalled. “I projected how much my liability could have been, and I did not like the number. It made me very scared.”
According to Bowman, under a standard 10-year repayment plan, her loans could have grown by an additional $5,000 in interest. Determined to avoid that outcome, she made aggressive repayment a top priority immediately after graduating in 2019.
Within just 16 months, she had paid off the full amount.
“I felt like that was more of an accomplishment than my actual degree,” she said.
How She Did It
Bowman shared several practical strategies that she credits for her rapid debt payoff.
1. Visualizing the Debt
She said the first step was facing the numbers directly.
“Put it on paper — an envelope, an Excel sheet — just write it all down,” Bowman advised, explaining that seeing the total helped her stay motivated and focused.
2. Automating Payments
Bowman also relied heavily on structured banking and automatic transfers.
She maintained separate accounts for:
- Bills
- Personal spending
- Savings
By routing funds into a dedicated bills account linked to automatic payments, she ensured consistent loan contributions without the temptation to spend elsewhere.
3. Avoiding Federal Loan Refinancing
Bowman warned against refinancing federal student loans, noting it can eliminate key protections such as flexible repayment options and forgiveness programs.
“If you have federal loans, do not refinance,” she said. “You’ll lose out on the federal protections.”
Small Moves That Made a Big Difference
Bowman also highlighted simple tactics that added up over time:
- Paying slightly more than minimum monthly amounts
- Applying extra money directly to the loan principal
- Maintaining strict budgeting discipline
However, she stated that aggressive loan repayment may not be the right choice for everyone.
For some people, she said, priorities might include:
- Building emergency savings
- Paying off higher-interest debt first
- Contributing to retirement plans with employer matches
A Message Beyond Money
Bowman told ABC News that while the process required sacrifices, becoming debt-free brought lasting peace of mind.
Her story, she said, shows that financial freedom often begins with awareness, planning, and consistent habits — even when the starting numbers feel overwhelming.
