If you Have a Mortgage Payment and no House, you may Have Just Graduated from College
With students recently returning to school and college, it reminded me of the financial choices and commitments that parents and their children have had to make to get the college education they wanted. It could be a choice of private school, public college, Mom’s Alma Mater, the Ivy League College you have always hoped for, the Big 10 University that would give you a sports scholarship or the university with the department that only a few universities have. It might be the one near the beach or the one in the big city. The one near your girlfriend, or the one that has the best social life. Could be it’s the one that follows your family values, political leanings, or is it faith-based?
Parents and their children do road trips to check out numerous colleges for numerous reasons. But in the end no matter what the criteria is for which college or university is chosen, it undoubtedly comes with a financial cost.
The Cost of Higher Education
For parents who have planned and made the commitment to the cost, this is a blessing to their children. Students who graduate with no or limited college debt, can obtain financial security much faster than those who have a huge college loan debt. These children are able to buy homes, cars, and begin to save and plan for their future. But those with excessive debt who would like to buy a home, find that the “mortgage” payment goes to their student loans. Then if they do decide to take on an actual mortgage or additional debt, they are behind for many years in trying to reach anything that looks like financial independence.
The most distressing thing seems to be those students who end up with tens of thousands of dollars of debt and yet they secure a job that pays $25,000 a year.
Ideally, it would have been good to make different choices in advance of going to college. Instead of going to Dad’s Alma Mater at $70,000 a year for a career choice of being an elementary school teacher; maybe going to a state school, with a teaching program that would erase student debt if you teach in the state after graduation would have been a better choice. Instead of going to an Ivy League college, maybe a trade school would have gotten you to the career you really wanted.
But Now What?
But if the decision has already been made and it is behind you, then it’s time to evaluate how to get on good financial footing. Debt consolidation. Budgeting. Career Counseling.
Let us help. Check out our “Staring Out. Starting Over” program which is geared to assisting those who find that they are struggling to get on a strong financial path.
If you feel like you are paying as much as a mortgage payment each month for your debt, and you don’t own a home, this might be for you. Or if you own a home and your college debt could buy you another home, reach out to us at 412-341-2888 or online for a free consultation.