Turn the lesson into action. Run these against your own numbers — that is where it becomes real.
You borrow$100,000At 6% over 10 years
You repay$133,225Interest adds $33,225
The salary gap$20,000/yrWith the degree vs without
Break-even6.7 yearsMeasured on what you repay
The amount borrowed$100,000
The amount actually repaid$133,225
Break-even against the amount borrowed says 5.0 years. Against what you actually repay, it is 6.7. That gap is the mistake almost every college calculator makes.
- Barbell check: is the school you are weighing top-tier, low-cost public, or the expensive middle?
- Run the ROI: realistic starting salary versus the total amount borrowed.
- Federal loans before private — and have you exhausted grants and scholarships first?
Put it into practiceRun your own numbers with the Basis Points Student Loan Calculator, then come back and finish your plan above.