A financial advisor approves a couple earning $110,000 annually for parenthood, citing imminent $45,000 student debt relief via PSLF.
A couple earning $110,000 combined with $65,000 in student debt received approval to have a child after $45,000 of the debt is forgiven under Public Service Loan Forgiveness (PSLF). Their $2,200 monthly mortgage payment remains manageable under the current income scenario.
The couple’s remaining $20,000 in student debt and $2,200 housing costs were weighed against their $110,000 income. Advisors recommended modeling both dual- and single-income budgets to account for potential daycare expenses.
Dropping to a single income of $55,000 would strain finances, making the $2,200 mortgage payment unsustainable without the PSLF relief. The couple was advised to prepare a detailed budget before the baby arrives.