Before You Sign Student Loans, Read This
Student loans can be useful. But for a lot of families, they quietly become a 10–25 year drag on housing, savings, and momentum. This page is a calm, reality check — not a lecture.
3 questions to answer before you borrow
1) What will it cost per month?
Don’t think in “total debt” only. Think in monthly payment. That payment competes with rent, car insurance, groceries, and saving for a down payment.
If you don’t know the payment, pause.
2) What job is it actually buying?
A degree is not a guarantee. Before you borrow, verify the expected entry wage, local demand, and what “first job” outcomes look like in Wisconsin (not just national averages).
3) What does this do to your housing timeline?
A few hundred dollars/month in student loans can delay a down payment by years — and a 30-year mortgage payment can sometimes be cheaper than rent (but only if you count taxes/insurance/PMI correctly).
Before you borrow: prove the job market is real
A student loan isn’t just “education debt.” It’s a bet that your degree will convert into a job that pays enough to cover the monthly payment and still let you build a life (housing, savings, family).
Do the 3-posting test (Wisconsin)
Before you sign anything, find 3 real job postings in Wisconsin for the exact role you’re targeting. Save screenshots or links.
- Job title match
Same role, not “close enough.” - Entry-level requirements
What do they actually require: degree, certs, experience? - Pay range
Use the low end to be safe.
If you can’t find 3 postings, slow down.
Do the “payment stress test”
Use the calculator below and then ask one question: Can I afford this payment and still save for a down payment?
If the job market is unclear, pause borrowing.
Ask this question out loud
“If I graduated next year, how many employers within driving distance are hiring this job — and what is the realistic starting pay?”
DTI basics: how student loans can block a mortgage
Lenders don’t just look at income — they look at how much of your monthly income is already committed. Student loan payments count against you when you try to qualify for a mortgage.
What is DTI?
Debt-to-income (DTI) is the share of your monthly income that goes to required debt payments (loans, credit cards, etc.). Higher DTI = harder approval.
Student loans raise DTI even if you “feel fine” month to month.
Why it matters
Student loans can reduce the home price you qualify for, increase the rate you’re offered, or force you to wait longer. The pain isn’t just “I pay a loan” — it’s the opportunity cost of delayed ownership and delayed equity.
Red flags (don’t ignore these)
If any of these are true, slow down and re-check the plan.
- “I’m not sure what I’ll do with the degree yet.”
Uncertainty + debt is a bad combo. - Borrowing more than your expected first-year salary.
That’s a risk signal, not a flex. - Assuming “it’ll work out” without numbers.
Hope is not a repayment plan. - No plan for housing after graduation.
Rent + loans can become a trap.
Calculator: Student loan vs down payment vs rent vs mortgage
Enter your numbers and see the trade-offs. This estimates: student loan payment, total interest, time to down payment, and rent vs mortgage.
Inputs
Home / rent assumptions
Results
A safer plan (even if you still choose college)
Step 1: Reduce the borrowing
Start at community/tech college, live at home if possible, apply for grants/scholarships, and work part-time. Less debt = more freedom.
Step 2: Verify job outcome (Wisconsin, not vibes)
Find 3 real job postings in Wisconsin for the role you want. If you can’t find them, reconsider the major or the debt level.
Step 3: Keep housing in the plan
If your repayment plan requires “cheap rent forever,” it’s fragile. Build a down payment plan early. Even a small down payment can change your options if your income is stable and your DTI is clean.
FAQ
Is this anti-college?
No. Some careers require degrees. This is anti “default debt” — borrowing without measuring the outcome.
What debt level is “too much”?
A common rule of thumb: avoid borrowing more than your expected first-year salary — and keep monthly payments manageable. Use the calculator above and stress-test your budget.
What if my career requires grad school?
Then the planning matters even more. Minimize undergrad borrowing and map total cost before you commit.
What if I’m choosing between trades and college?
Compare timelines: earnings while learning vs. delayed earnings + debt. If you can earn early, keep options open, and avoid large debt until ROI is proven, you reduce risk.
Want the other side of the story? Read: What Wisconsin Really Says About College vs. Apprenticeships