2nd Q first:
I didn't START school until after my son was 2 months old. My previous 'gainful employment' option was completely closed to me (requires being in warzones on 6month contracts)... and my other options were all minimum wage or just slightly better affairs.
I would have LOST money working until he was in kindergarten(daycare cost more than I would have made). My husband has never been a fan of me being a SAHM, but I swear, you'd think an engineer could do the MATH. Even now (since kindergarten), I'd only clear about $2 an hour after paying for before and afterschool childcare and the bump in taxes. Sorry... $80 a week is not worth me working in a dead end job NOT "climbing a ladder" in MY field (aka a dead end jobby-job worked purely for money and not for advancement). And that's before deducting for gas, work clothes, drycleaning, emergency childcare (for when he's sick), etc. NOT WORTH IT.
So, anyhow, back when (9 years ago)... I started school when he was 2 months old. I got $3k per quarter AFTER my tuition and books were paid for. I got a childcare subsidy (through the school) that PAID for his childcare (I only needed 10 hours a week, being in school) outright, and then PAID for his preschool at 90% (so I could afford to send him to an amazing/killer/awesome preschool I could never have afforded otherwise). Going to school I "made" a thousand dollars a month, instead of LOSING money... and I only had to be gone 10 hours a week!!! I studied during his naps and after bedtime (and later while he was in preschool).
I've had to take a couple years off here and there (first having him all day, and then working half the night due to a major financial crisis... and then we made the decision to buy a house, which meant no school for me for 1-2 years... but the house has SO been worth it, and now I'm back in school).
For ME, going to school is the PERFECT thing. I only have to be gone 10 hours a week. Most of my work is done at home. I make more money going to school than working, and I'll make 5x-10x what I can make now when I graduate. I actually started homeschooling a few years ago. Works GREAT with my being in school (he goes to an "afterschool" daycare, which is when I take my classes. Although, I should note, I have NEVER taken a full load...err... I did once, it was a mistake and was quickly rectified).
Run the numbers.
It may well be that quitting your job and living off of finacial aid/ scholarships&grants/ loans is the better short &/or long term financial plan for your family. (Btw..student loans work differently than any other kind of debt. First off the interest rate about equals inflation which makes it "free" money, secondly they're like a mortgage - you pay them off over DECADES and consolidating them -through the govt.- makes the payments reeeeally low, my husband has 60k in loans and we only pay $80 per month, thirdly "outside agencies" don't consider student loans as normal debt. 100k in student loans translates to about 1k in regular debt, so they don't stop you in buying a home, etc., fourthly they get deferred while you're in school, and deferred if you ever have a gap in employment.).
((NOTE: It takes a WHILE to get school money set up (FAFSA, applications, etc.), usually 6mo- 1 year.))
Did it crush me not to have the extra hours? NOPE. Because I've gotten so much MORE time.
I'm following the advice of Ghandi. I am the change I want to see in the world. I'm homeschooling my son. I'm in school working towards my own dreams (I'm quad majoring, it's gonna take awhile). I'm doing things in reverse order than most people... but hey. Whatever :)
Darn... this got long. So I'll skip listing my childhood dreams, which are pretty lengthy, as is the description of what I'm working toward now as an adult.