The Real Costof Debt
$1.7 Trillion in student debt in the U.S.

Before you sign,
see what you're really paying.

Student loans aren't just tuition. They're years of your life, thousands in interest, and the compounding wealth you could have built instead. See the full picture.

$37,787
Average borrower debt
20 years
Average repayment time
1 in 5
Borrowers are in default

Use the calculator below to see your personal numbers.

Your School

Search for your school or enter costs manually.

Your Major

Affects salary used in repayment calculations.

Loan Details

$
$0$300,000
%
0%15%
1430
$
$20,000$300,000

The Alternative: Investing Instead

What if?

Instead of paying off loans, what if that money went into the market? Set your expected annual return below.

7%
3% (conservative)10% (S&P 500 avg)iThe S&P 500 is a basket of the 500 biggest U.S. companies — think Apple, Nike, and Google. Investing in it means owning a tiny slice of all of them. It has averaged ~10% growth per year since 1957.12%

7% is inflation-adjusted — a conservative, realistic estimate.

True Cost of This Debt

$54,601

$40,000 borrowed + $14,601 in interest

Monthly Payment$455for the next 10 years
Total Interest Paid$14,601money you'll never get back
Debt-Free Age32Year 2040
Debt-to-Income10.9%of monthly income

What This Debt Is Really Costing You

If you invested your loan payments instead (by age 65)

$734.4K

$455/mo × 10 yrs, then compounded to 65

Retirement wealth comparison

Invest from age 18

$4.08M

vs

College path

$965.0K

Taking on this debt means arriving at retirement with $3.11M less than if you had invested that money starting at age 18.

Roth IRA: Starting Now vs. After Debt

Key Insight

Start at age 18

$2.56M

Max $7,000/yr to age 65

vs

Start at age 32

$900.2K

After debt is gone

Compounding years lost to debt:-$1.66M

Roth IRA growth is tax-free. Every year you delay costs you exponentially more at retirement.

Assumptions

S&P 500 historical avg: 7% annual return

Effective tax rate: 22% | Salary growth: 2%/yr

This is educational, not financial advice. Consult a licensed advisor.

Net Worth Over Time

College path vs. investing that money instead — same time horizon, very different outcomes.

Invest path assumes loan payment amount + 15% of income invested from age 18. College path assumes 10% savings while repaying, 20% after debt-free. Return rate set by user above.

What the brochure doesn't tell you

The student loan industry is built on decisions made at 17. Here's what you need to know.

Interest starts accruing immediately

On unsubsidized loans, interest builds while you're still in school. A $50,000 loan at 6.54% grows to $64,595 by graduation day — before you make a single payment.

📅

The 10-year plan is brutal

The standard repayment term is 10 years. On $50,000 at 6.5%, that's $567/month — before rent, food, or car payments.

📉

Compounding works against you

The same compounding that builds wealth in the market works against you in debt. Every month you delay paying it off, you owe more.

📈

Your 20s are your most valuable investing years

A dollar invested at 22 is worth more than $21 at 65. Student debt delays your investing by a decade — that gap is enormous.

🎓

Not all degrees are equal

A nursing degree from a state school has a 2-3 year payoff. A communications degree from a private university may never break even.

🔧

Alternatives are underrated

Trade schools, community college, coding bootcamps, and apprenticeships can lead to $60-100K+ careers with zero debt.

College isn't the only path to a great life.

Before signing any loan, explore every option. The best financial decision is an informed one.

State School
In-state tuition is 50-70% cheaper than private
Community College
2 yrs at $5K/yr, then transfer to a 4-year school
Commute from Home
Room & board averages $12,000/yr — living at home eliminates it
Trade School
Electricians, plumbers & HVAC techs earn $70-100K+
Apprenticeships
Earn a salary while you learn a high-demand skill
Bootcamps
Land a tech job in 6 months with zero student debt