Degree & bootcamp payback
See how many years a degree, bootcamp, or trade school takes to pay back. Counts tuition, student loan interest, lost wages, and your pay bump.
ISA yearly cost, middle path
9.32%
The loan costs 6.52% a yearExample calculationNo, the loan costs less per year
At these inputs the ISA costs about 9.32% a year and the loan costs 6.52%. The loan is cheaper.
Loan yearly cost
6.52%
$227.30 a month for 120 monthsISA total paid
$31,526
120 months, cap $40,000Loan total paid
$27,276
$7,276 of interestBreak-even starting income
$48,344
ISA cheaper below, loan cheaper aboveThree income paths
On the low path ($28,000 to start, 1% growth) the ISA repays less than it funded, so the ISA is cheaper. On the high path ($90,000 to start, 5% growth) the ISA costs 19.51% a year, so the loan is cheaper.
An ISA payment follows your income, so it tends to cost less per year if income stays low and more if income rises. In the table, its yearly cost runs from below 0% on the low path to 19.51% on the high path, while the loan stays at 6.52%.
| What | Low path | Middle path | High path |
|---|---|---|---|
| Starting yearly income | $28,000 | $55,000 | $90,000 |
| Yearly income change | 1% | 3% | 5% |
| ISA total paid | $4,548 | $31,526 | $40,000 |
| ISA months with a payment | 36 of 120 | 120 of 120 | 91 of 91 |
| ISA yearly cost | -17.07% (less than funded) | 9.32% | 19.51% |
| Loan total paid | $27,276 | $27,276 | $27,276 |
| Loan yearly cost | 6.52% | 6.52% | 6.52% |
| Cheaper per year | ISA | Loan | Loan |
| Cheaper in total dollars | ISA, $22,728 less | Loan, $4,250 less | Loan, $12,724 less |
| Notes | payments paused for 84 months | None | cap reached in month 91, the contract ends early |
Break-even starting income
At a starting salary of $48,344 (with 3% yearly income change) the ISA and the loan cost the same per year. Below it the ISA is cheaper at these inputs; above it the loan is. Your middle path starts at $55,000, $6,656 above it, where the loan is cheaper.
If income stays flat (0% growth), the middle path costs about 6.70% a year and the break-even starting salary is $54,552.
Monthly payment, first month and last year
| What | ISA, middle path | Loan |
|---|---|---|
| First month | $229.17 | $227.30 |
| Last 12 months, average | $299.01 | $227.30 |
The ISA payment moves with your income. The loan payment is fixed. The last-year figure is the average of the final 12 months the ISA runs.
Total paid so far
ISA on the middle path against the loan, with the ISA payment cap as a dotted line.
What changes the answer most
On the middle path, the ISA yearly cost moves most with the share of income (4.56% if lower, 13.56% if higher) and the starting salary (7.02% if lower, 11.50% if higher).
| Input | Change | If higher | If lower |
|---|---|---|---|
| Starting salary | 10% more or less | $60,500: 11.50% (+2.17 points) | $49,500: 7.02% (-2.30 points) |
| Income growth | 2 points up or down | 5%: 11.04% (+1.71 points) | 1%: 7.58% (-1.74 points) |
| Payment cap | 0.5 times up or down | 2.5 times: 9.32% (no change) | 1.5 times: 8.61% (-0.72 points) |
| Share of income | 1 point up or down | 6%: 13.56% (+4.24 points) | 4%: 4.56% (-4.76 points) |
| Income threshold | $5,000 up or down | $35,000: 9.32% (no change) | $25,000: 9.32% (no change) |
What this does not cover
Federal student loans have yearly and total limits, income-driven repayment plans and, in some cases, forgiveness. An ISA has none of these. This calculator does not model forgiveness, deferment, forbearance or income-driven plans, and it leaves out fees, taxes and the student loan interest deduction. ISAs are regulated differently from federal loans. The Consumer Financial Protection Bureau (CFPB) has treated them as credit, and your contract, not this page, decides what applies to you.
How this estimates
- Loan. A fixed monthly payment that pays off the amount over the loan length at the rate you enter. Total paid is the payment times the months. The loan's yearly cost is the rate itself.
- ISA payment. Each month your income is your starting income, raised or cut by the yearly change once every 12 months. If it is at or above the threshold you pay the share of income divided by 12. Below it, the payment is zero.
- ISA end. The agreement ends at the set length or when your payments reach the cap (the amount funded times the cap multiple), whichever comes first. The last payment is trimmed to hit the cap exactly. If extra months is above 0, each month with no payment adds a month to the end, up to that limit.
- ISA yearly cost. The monthly rate at which all the ISA payments, discounted, equal the amount funded, times 12. That is the same basis as a loan APR. If you would pay nothing there is no cost to measure, and it counts as cheaper than any loan. If you would repay less than you were funded, the rate is below 0%.
- Which is cheaper. The lower yearly cost. Within 0.25 percentage points the page says about the same. It also compares total dollars paid, and says so when the two answers differ.
- Break-even income. The largest starting income where the ISA still costs no more per year than the loan, with the same income change and every other input held fixed. It is searched between $0 and $1,000,000.
- Flat income and sensitivity. The middle path is rerun with 0% income change. Starting income, income change, cap, share and threshold are each moved one at a time, and the two with the largest swing in yearly cost are shown.
This is an estimate at the inputs you set. It is not financial or legal advice. Read your contract.
Benchmark sources and dates
Starting assumptions are example benchmarks, not binding quotes. Change any input to match your own bills or offers.
| Assumption / Input | Starting value | Source | Checked |
|---|---|---|---|
| Federal undergraduate loan rate | 6.52% a year | U.S. Department of Education, interest rates for Direct Loans first paid out 2026-07-01 to 2027-06-30 | 2026-10-17 |
| Federal graduate unsubsidized loan rate | 8.07% a year | U.S. Department of Education, interest rates for Direct Loans first paid out 2026-07-01 to 2027-06-30 | 2026-10-17 |
| Private loan rate | 10% a year (typical, edit this) | Typical value, no official average was reachable on 2026-10-17 | 2026-10-17 |
| Loan length | 120 months (typical, edit this; the standard federal term is 10 years, not verified on studentaid.gov) | Federal Student Aid, not reachable on 2026-10-17 | 2026-10-17 |
| Amount funded | $20,000 (typical, edit this) | Typical value, a round example with no official source | 2026-10-17 |
| ISA share of income | 5% of income each month (typical, edit this; reported range 2% to 20%) | Hechinger Report | 2026-10-17 |
| ISA length | 120 months (typical, edit this; one provider's agreements ran 20 years) | Consumer Financial Protection Bureau, order against an ISA provider | 2026-10-17 |
| ISA payment cap | 2.0 times the amount funded (typical, edit this; reported caps of 2.5 and up to 3 times) | Hechinger Report | 2026-10-17 |
| ISA income threshold | $30,000 a year (typical, edit this; providers set their own threshold) | Consumer Financial Protection Bureau, order against an ISA provider | 2026-10-17 |
| Extra months for months with no payment | 0 months, off (maximum 60) | Consumer Financial Protection Bureau, order against an ISA provider | 2026-10-17 |
| Middle path: starting income and yearly change | $55,000 a year, 3% a year (visitor must check) | Typical value, no official source | 2026-10-17 |
| Low path: starting income and yearly change | $28,000 a year, 1% a year (typical, edit this) | Typical value, no official source | 2026-10-17 |
| High path: starting income and yearly change | $90,000 a year, 5% a year (typical, edit this) | Typical value, no official source | 2026-10-17 |
| ISAs are treated as credit | Context only, no number used | Consumer Financial Protection Bureau, order against an ISA provider | 2026-10-17 |
| An ISA can be a private education loan | Context only, no number used | U.S. Department of Education, Electronic Announcement GENERAL-22-12 | 2026-10-17 |
| Federal loan limits and the new Repayment Assistance Plan | Not printed on the page, reported only, verify on studentaid.gov | Stanford financial aid; Western Carolina University; NYC.gov student loan changes page | 2026-10-17 |
| Not found | No figure used | Not available | 2026-10-17 |