A common question from students weighing college choices: is it worth taking on six figures of debt for a degree, or does staying in-state and borrowing less come out ahead? The math usually favors borrowing less, even when the sticker-price school feels like the better opportunity.
Do the math before you commit
Take a scenario like $250,000 in debt for an out-of-state business degree against a starting salary in the $55,000 to $70,000 range. Spread over 25 years, that debt works out to roughly $1,700 a month, a payment that will shape your financial life well into your 30s regardless of how your career goes. Even a smaller balance, say $120,000 for an in-state option, is still a meaningful burden against an entry-level salary. Run the actual monthly payment numbers against realistic starting pay before deciding, not just the total price tag.
Ways to cut the cost without giving up the goal
In-state public colleges tend to be far more affordable than out-of-state or private schools, and the degree carries the same weight in most career paths. Taking college classes during your senior year of high school, loading up on AP credits, or starting at a community college and transferring later can knock a meaningful chunk off the total cost without changing where you ultimately graduate from. Living at home during the early years, if that’s an option, further reduces the biggest non-tuition cost: room and board.
The bottom line on ROI
The return on an undergraduate degree rarely justifies spending more than necessary to get it. Plenty of people carrying six-figure undergraduate debt into their 30s end up wishing they’d saved that capacity for an MBA, law degree, or other graduate program where the additional debt might actually pay for itself. Apply for scholarships aggressively, keep your GPA high enough to qualify for more of them, and treat the cheapest path to the same degree as the default, not something to feel bad about choosing.
Educational only, not tax, legal, or investment advice. Check primary sources and speak with a qualified professional before making financial decisions.
