Student loans follow people around even after graduating from university. This time, they chase them around in the form of debts. In five students who are eligible to borrow from the Student loan Scheme, one will choose not to touch theirs. These people have their parents fund their schooling.
The rest have to deal with student debt. This “deferred tax liability” has become a part of student’s – even a former student’s – life. In 2014, people owed over $14.3 billion to the state. RapidLoans.co.nz share more information on this matter.
Student Loan Debts Hinder Starting a Family
The national student union says that crushing debt is the reason students postpone their plans of starting a family right after graduating.
The New Zealand Union of Students’ Associations conducted a survey called the Tertiary Student Income and Expenditure Survey with 5,000 respondents who are students across New Zealand. According to 36 percent of them, the state of their loan will influence their choice of whether or not starting a family is a good idea. A fifth of the respondents said they would have to wait longer before they start a family.
From this survey, we can assume that the student debt forces them to delay their choices for their future. With the debt still present, some of them worry that they would not be able to raise and provide for their children.
Although some of them say this would not affect their decisions on having children, it would make it harder for them to raise a family and try to pay their debts at the same time.
The Cost of Raising a Family in New Zealand
There are a number of studies that make an estimate of how much it costs to raise children. On average, the cost of raising two children to 18 years old is 20 to 25 percent of a two-income household. That means raising them would cost around $13,000 to $16,000 annually, and that would be on an average income of $64,000 per year.
The main expenses in raising a child are housing, childcare, food, clothing, personal care, transport and healthcare.
In the end, it is still up to you whether you want to start a family with the debt still unpaid or not. If you are still lost on the idea of debts and paying them, it would be better to consult a professional. Knowing what you are paying for will make it easier to plan your expenses.