A guy who paid off his student loan balance by paying for the loan for 15 years after he had already paid $40,000 of it was finally able to pay off the rest using an inheritance that he received after a family estate was sold. He shared his story on Reddit’s r/StudentLoans subreddit as follows: “Paying about $450/month since May 2009 and used all of a just-inherited $40k from sale of family estate to pay off both loans.”
A long way to financial freedom
His repaying of his student loan was in monthly payments of around $450, made for 15 years, so about $81,000—a sum in addition to the doubling of the principal because interest had been added.
This is but one of the very hard, concrete monetary costs of student loans long term.
Leveraging inheritance to pay off debt
When he had inherited a family property, the man was so lucky to have $40,000 that he would only spend on clearing the outstanding balance on his student loan. This is the common dilemma most inheritors go through where they are undecided on whether to use the funds in paying off the current debt or investing elsewhere.
Community support and shared experience
Many people who had varied experiences with the same issues realized they could relate to the Reddit post. A commentator noted, “I’ve been paying approximately $450/month since May 2009 and exhausted every last dollar of a recently inherited $40k from sale of family estate to retire both loans.”
The larger student loan problem in America.
This anecdotal story epitomizes the larger student loan debt problem in America. As of 2025, the federal student loan outstanding amount has hit approximately $1.693 trillion in total amounts outstanding, and approximately 42.7 million borrowers take federal loan debt. The average federal student loan balance is established at $38,375, and aggregate average balances incorporating private loan debt may be as much as $41,618.
The debate: Is inheritance money ought to be utilized to pay student loans
Most of them are conflicted about whether or not they should use inheritance funds to pay student loans. Professionals likely suggest interest rate, loan amount, and individual priorities. For example, the long-term benefits of debt payoff are incredible when debt has a high interest rate, but with a low-interest loan one will not be required to pay in the short run.
