Our youngest daughter, an energetic and delightful 18-month-old, never ceases to amaze us. She navigates all her developmental milestones with ease, making parenting seem wonderfully smooth. However, managing her frequent illnesses is becoming quite challenging for my husband and me, especially given our current work schedules.
Both of us have jobs that allow remote work, which helps us take care of her when she’s sick. Unfortunately, we’ve been needing this flexibility more often than we’d like, and it hasn’t gone unnoticed. One day, my husband’s boss subtly pointed this out, mentioning a family member who had to make tough career choices when handling childcare for their twins.
We don’t work by choice but out of necessity. We’re burdened with enormous student loans, which are even higher than the average US mortgage. So, we have no choice but to work to meet our financial responsibilities and support our children. The decision we made to take out student loans a decade ago still heavily impacts our lives.
At 18, getting student loans seemed like a brilliant idea because they promised a great college experience and the assurance of easy repayment once we secured good jobs after graduation. This plan worked well for those who took on smaller amounts of debt, earned decent salaries, and lived within their means, making student loans quite manageable.
However, student loans play a significant role in various life events. For example, when it comes to buying a car after graduation, a solid credit history—often built through student loans—can help secure a loan. But, a high debt-to-income ratio due to large student loans can make it tough to get approved. It’s advisable to work on reducing your debt to maintain healthy credit scores.
Student loans also affect marriage. Weddings have become more extravagant and expensive, and student loan debt can complicate wedding budgeting. Additionally, combining your spouse’s debt with yours can strain your finances and impact your plans for starting a family. Honest conversations about money are crucial before tying the knot.
Having a baby requires financial adjustments for things like diapers and baby-proofing the house. This becomes more complicated with student loans in the picture, often influencing decisions about who stays home with the baby.
In the same way, student loans can limit your ability to buy a home by affecting your debt-to-income ratio. While a history of on-time payments can benefit your mortgage application, large student loans might constrain your budget more than your income can comfortably handle.
Starting your career also involves saving for retirement, but significant student loan payments can make it hard to contribute substantially to your retirement fund. Those who can start investing early benefit from compound growth, something that student loan repayments can hinder.
In conclusion, while student loans facilitate the college experience, they also impact other life goals in unexpected ways. It’s wise to borrow minimally and repay the debt as soon as possible.
Think back on how student loans have influenced major milestones in your life. Do you regret the amount you borrowed, or do you consider them a necessary step? With what you know now, would you make different choices about financing your college education?