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Being Free From Student Loans Is Not As Awesome As You'd Think

Other personal goals should sometimes take priority over student debt repayment. 

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When I still had student loans, I thought that paying off my student debt would fix all of the problems in my life.  Indeed, my student loans were causing me an unbelievable amount of stress, and I reasoned that all of this tension would disappear when I was debt-free.  I also believed that student loans were the greatest source of unhappiness in my life, and that I would be much more content once I paid off my student loans.  During my student debt repayment saga, I daydreamed about being debt-free often, and I thought every day about how awesome it would be to finally pay off my student loans.

Many people told me throughout my student debt repayment saga that paying off my student loans would not make me any happier or more content. Individuals related that debt is just a part of life, and there will always be mortgages, car payments, and other obligations that would always be part of my existence.  In addition, others related that if you were unhappy while paying off student loans, you would be just as unhappy if you were debt-free.

It might not be good business for me to admit this, but these individuals were mostly correct!  Although paying off my student debt has given me a number of opportunities and relieved me of some financial stress, I cannot say that I am significantly happier being debt-free than I was while paying off student loans.

Immediately after paying off all of my student loans, I was happier than I had been in years.  I remember the moment I realized I had paid off my student loans like it was . . . a year-and-a-half ago.  I logged into my online student loans account to make sure that my last payment was processed.  After realizing that the outstanding balance was zero, I experienced a feeling of contentment that I can hardly describe.  I just sat in awe for 30 minutes basking in the glow of this amazing accomplishment.

In the months that followed, I experienced a wide range of emotions.  Almost immediately after paying off my student loans, I felt an intense bitterness about the whole student debt repayment process.  I thought it was unfair that after working thousands of hours at side-hustles, saving money in unbelievable ways, and making other sacrifices, I was just in the same position as “rich kids” who had their parents pay for their legal education.  As I mentioned in my Above the Law column last week, individuals need not feel bad for having their parents pay for their law school expenses, and I don’t hold anything against these people.  However, at this time, I had an intense feeling of resentment.

Shortly after paying off my student loans, I also wondered if completely devoting myself to debt-repayment was the right thing to do.  As I already discussed on my own website, it might make sense to save for retirement rather than pay off student loans.  It might also be wise to use any extra money for a down payment on a property.  I learned much during my student debt repayment saga, and I kept second-guessing my financial decisions based on information I acquired along the way.

Eventually, other financial objectives filled the gap where my student loans once were. I liquidated a good deal of my savings to pay off my student loans, so in the short term, I told myself that I would not be content until I replenished my savings and set aside a solid emergency fund.  Later, I decided to finally start saving for retirement and I told myself that I would not be truly satisfied with my life until I made up for lost time and put myself on the right track for retirement.  More recently, I decided that I wanted to buy a property, and I told myself that I would not be satisfied with my life until I saved enough money for a down payment and closing costs.  If I do purchase a property, I’ll be in even more debt than I was when I was paying off my student loans.  I’ll probably tell myself that I cannot be content with my finances until I pay off my mortgage or make substantial progress toward this goal.

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At every step of my life recently, there has been another financial burden that took the place of my student loans.  Just as many people told me during my student debt repayment saga, I always had another financial objective I was working toward.  After achieving these goals, I could not feel truly satisfied, since there was always another benchmark on the horizon.  I am sure I am not alone in experiencing this phenomenon, and I am far from the first person to explain the “rat race” of life that we all experience.  As such, I am sure that many people will have similar experiences when they pay off their own student debt.

I’m not saying that you shouldn’t pay off your student loans!  Being free from student debt opens up a number of opportunities, and it is best to avoid paying interest if you can.  However, it is worth pointing out that other personal goals should sometimes take priority over student debt repayment.  In the end, paying off your student loans will likely not make you as happy as you’d think.

Jordan Rothman is the founder of Student Debt Diaries, a personal finance website discussing how he paid off all $197,890.20 of his college and law school student loans over 46 months of his late 20s. You can reach him at [email protected].

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