Writing gives us the freedom to share our perspective, and perhaps through mine, you will reflect on yours.
My parents were both college graduates, but their student loans shaped our lives in ways I did not fully understand until years later. The debt damaged their credit, delayed financial goals, and left them unable to access other loans. Sometimes, even basic payments had to be postponed, only to cost more later.
My father made some difficult financial decisions. He trusted the wrong business partners—people who walked away with the profits and left him with the losses. Loans he gave out were never repaid. Still, my parents never cut corners on the essentials: food, shelter, and our education. And even when money was tight, they gave to others. That is who they were and who they continue to be.
What stands out most, however, are the moments of joy they made sure we experienced. Going to the movies or eating out was never accidental; it was intentional. They made the effort, and to me, those experiences meant everything. They were not just moments of fun; they were signs that even in difficult times, our home was filled with love, hope, and stability.
When I turned eighteen, they finally paid off their student loans. That was when I truly understood the weight they had carried—and the strength it took to carry it while still creating a happy, grounded life for us. That is why the positive moments matter more. My parents did not let debt define our story. They showed me that financial struggle is real, but it does not have to steal your joy or your purpose.
Looking back, I realize that my parents had spent my entire childhood and adolescence paying off their student loans. They sacrificed for years so that I could have better opportunities. Now, I am working hard so my children can have a better future. So, I wonder: Are student loans worth it? For my parents, they were. But what about you? Is it worth it?
Dr. Thomas Korankye and colleagues asked a similar question as they analyzed the relationship between student loan debt and retirement.[1] They found that carrying student loans into retirement adds financial stress, limits choices, and reduces overall happiness.1
A college degree may open doors to better earnings; nevertheless, not all college students have the means to cover the costs. Student loans can become a “quick” solution to such a predicament, but this choice could take decades to pay off. Korankye explained that people who have difficulties covering expenses or tend to spend more than they earn are more likely to carry student debt into retirement, making financial stability even more difficult to achieve.1
The good news is that they also found that financial knowledge can help. People who understand personal finance are less likely to carry student debt into retirement. Financial knowledge is a key factor in avoiding the long-lasting problems that student loan debt usually entails.1
So, is it worth it? Is it worth the effort, the constant worry about making ends meet, the fear of missed payments dragging down your credit score, the sacrifices of postponed dreams—all for the hope that a degree will eventually pay off? The truth is, it depends. (I know—that is the classic, vague answer we hear all the time in life. But in this case, it is actually a beautiful reminder that it also depends on our choices.) For some, student loans open the door to opportunities that would not exist otherwise. For others, the long-term burden can outweigh the benefits—especially without the knowledge to navigate those financial choices wisely. Whether it is worth it or not depends on your circumstances, your goals, and your ability to make informed decisions. Think about it; your answer depends on your goal and ability to use this opportunity—the student loan—to invest in your education, gain better qualifications, and open doors to higher-paying jobs or a more fulfilling career. You can find a way to make student debt work. Sometimes the problem is not debt but rather the lack of financial knowledge to make wise financial choices. Here are a few suggestions to help you get started:
Takeaways
· Take time to enhance your financial knowledge.
Financial knowledge is essential for making informed financial decisions. In other words, you can make better financial decisions with a clearer understanding of how money works. Consider taking classes, watching educational videos on social media, or seeking advice from knowledgeable individuals. Key topics to explore may include the components of credit cards and loans, the concepts of inflation and compound interest, and the meaning of Annual Percentage Rate (APR) which represents the yearly cost of borrowing money. Developing the habit of learning about finances will enhance your ability to make sound financial decisions. With increased knowledge, you can optimize your financial choices and avoid situations that may negatively impact you and your family in the future.
· Acknowledge the good and bad of student loans.
The idea that student loans are inherently bad is misleading; in reality, they provide an opportunity that can open doors for many students who need financial assistance to complete their education. By enabling access to higher education, student loans can help individuals achieve their career goals and, ultimately, improve their financial situation.
Conclusion
Financial education is a lifelong journey, and by recognizing now that student loans—and financial decisions in general—can have both positive and negative effects, you are already taking a crucial step toward empowerment. Each day is an opportunity to make wiser financial choices, to use money as a tool for your benefit and the well-being of your family. Mistakes are part of the process, so do not let them discourage you. Instead, use them as steppingstones to grow. Keep a growth mindset, embrace the joy of learning, and remember that financial challenges—including the long-term impact of student loans—are not the only problem; another issue is not learning how to manage finances effectively. Every financial decision, when approached with wisdom, can be turned into an opportunity for growth and success.
References:
[1]Korankye, T. (2024). Student loan debt in retirement: identifying the correlates and implications for policy, practice and research. Managerial Finance, 50(4), 791-810. https://doi.org/10.1108/MF-11-2022-0543