Student Loan Payoff Strategy

I think that I came up with a strategy to pay off my student loans from undergrad. I only owe about $7,220 right now. These were subsidized loans, though, so they've gone into deferral while I'm in grad school and the government pays the interest during that time. Not bad, huh?!?

The loan will be in deferral until May 2011. So, I'm going to start stashing money beginning in January 2009. If I put away $260 every month for 28 months, I'll have $7,280 by May 1, 2011!! That will be enough to pay the entire loan off!! And there's no point in me paying it off early if I'm not being charged interest during the deferral period, so I'll be making interest off that money too (I'll just create a new ING Direct account).

I'm excited that I have a plan for that!! Woo!