Deciding to borrow money to pay for college can be one of the most consequential choices you ever make. It’s not just signing a piece of paper and hoping for the best—it’s asking whether that debt will become a smart investment or a burden that follows you around for years.
The short answer: it depends. It depends on what you’ll study, how much it will cost, how much you’ll earn afterward, and what alternatives you have. The good news is we’re going to unpack everything so you can make the best possible decision.
💰 The Real Cost of College
Let's start with the basics: college is expensive. Very expensive. And every year it seems to cost more.
A degree at a prestigious private university can run significant amounts per semester. Multiply that by 10 semesters (5 years) and you're talking substantial sums just in tuition. That doesn't include books, transportation, supplies, food, and all the "little" expenses that add up fast.
Public universities are more affordable, but competition is fierce. And even if tuition is lower, the related costs don’t disappear—time spent studying instead of working carries an opportunity cost.
The True Weight of Student Debt
When you take out an education loan, you’re not only borrowing the tuition. You’re committing to pay back:
- The principal
- The interest that adds up for years
- Administrative fees
- The opportunity cost of that money
A 80 million loan at 12% annual interest repaid over 10 years ends up costing close to 130 million. Almost double what you borrowed. Those extra 50 million could have been the down payment on an apartment or seed capital for a business.
🎯 When Does Borrowing Make Sense?
Not all student debt is bad. In fact, there are scenarios where borrowing to study is one of the best investments you can make.
Degrees with a High Return on Investment
Let’s be real: not all degrees pay the same. If you’re studying medicine, software engineering, petroleum engineering, or law at a reputable university, the odds of recouping your investment are high.
A specialist physician can earn between 8–20 million a month once established. A senior software engineer at an international company can clear 15 million. With those paychecks, paying back a 100 million loan over 10 years is tough but doable.
The key is to run the numbers before you sign. Research average salaries for your degree during the first five years. If that income lets you live comfortably and make loan payments, go ahead.
When It Opens Doors You Can’t Otherwise Unlock
Some professions simply require a university degree. You can’t become a surgeon with an online course. You can’t practice law without a law degree. You can’t be a licensed architect without that diploma.
If your calling requires that credential, the question shifts from “is it worth it?” to “how do I do this in the smartest way possible?”
When You Have a Clear, Realistic Plan
Borrowing makes sense when it’s not a leap of faith. If you’re clear on:
- What you’ll study
- Where you expect to work afterward
- How much you’ll earn (roughly)
- How you’ll repay the loan
- What you’ll do if things go sideways
…then you’re making an informed decision, not taking a blind risk.
🚫 When Borrowing Is Not Worth It
Just as important: knowing when to say “no” to that student loan.
When You’re Studying Because of Social Pressure
If you’re heading to college because “that’s what you’re supposed to do,” because your parents insist, or because all your friends are going, stop. Borrowing because of social pressure is a mistake that can leave you with massive debt and a degree you don’t even want.
When the Degree Has Questionable Job Prospects
Let’s be honest. Some programs have mediocre placement rates and low salaries. If recent graduates are earning 2–3 million a month, taking on a 120 million loan is financial suicide.
Examples? Many humanities, arts, and social science programs struggle in the job market. That doesn’t mean they lack value, but the math is very different. If your expected salary won’t even cover living expenses plus the loan payment, it’s a bad deal.
When You Have No Idea What You Want to Study
Borrowing the equivalent of a luxury apartment to “figure things out” is a bad idea. If you’re not sure what you want, explore cheaper alternatives first: short courses, technical programs, internships, volunteer work. Once you’re certain, then decide.
When the Loan Terms Are Predatory
High-interest loans, fees for everything, mandatory insurance, rigid payment schedules. If the bank or lender is making things overly complicated, why do you think that is? Because the loan is designed to benefit them—not you.
When You Already Have Heavy Debt
If you’re already juggling credit cards, personal loans, or supporting family financially, adding a six-figure education loan may push you over the edge. Debt piles up fast. Know your limits.
🧠 Alternatives Before You Sign Anything
Borrowing isn’t the only way to pay for college. Let’s look at some options that can dramatically lower how much you need to borrow—or eliminate the need entirely.
Scholarships and Partial Funding
Before you sign for 100% of your tuition, do a deep dive on:
- Merit-based scholarships: Many universities offer them
- Athletic or arts scholarships: If you have specific talents
- Government programs: National or regional scholarships and grants
- Private company programs: Some sponsor your degree in exchange for working with them later
- Exchange programs: Study part of your degree abroad with subsidized costs
A 50% scholarship cuts your debt in half. It sounds obvious, but many students don’t even apply.
Study and Work at the Same Time
Yes, it’s exhausting. Yes, it’ll take longer to finish. But working part-time while studying can slash how much you need to borrow.
If you can earn 2 million a month working 20 hours a week, that’s 120 million over five years—enough to cover a significant portion of your education.
Many companies also offer tuition assistance or continuing education programs tied to your job. That support is worth its weight in gold.
Start at a Public or Technical School
Here’s a strategy most people overlook: take your general education courses at an affordable public university or a technical institute, then transfer your credits to the more expensive school for your specialized semesters.
You cut costs drastically and still graduate with the prestigious diploma. Not every university allows this, but many do—ask.
Shorter Programs or Intensive Tracks
Do you really need a five-year degree? In many tech fields, bootcamps or intensive programs can get you job-ready in months for a fraction of the cost.
Software engineering, UX/UI design, data analytics, digital marketing—they all have alternative paths costing 5–15 million that can have you working in less than a year.
It’s not for everyone or every career, but if your goal is quick employability, consider these options.
💡 Factors to Weigh Before Deciding
Your Family Situation
If your parents can contribute part of the costs, that changes the entire equation. But be clear: just because they can doesn’t mean they should sacrifice their retirement or take on debt themselves.
Have honest conversations about how much they can contribute without hurting their own financial stability.
The Field You’re Entering
Some industries value experience over degrees. In tech, for instance, a strong portfolio may matter more than a fancy diploma. In medicine, the opposite is true.
Talk to people already working in your field. Ask them, “If you could go back, would you borrow for your degree again?”
Your Risk Tolerance
Some people handle the stress of large debt better than others. Others lose sleep the moment they owe 100 million. Know yourself.
If the idea of owing that much paralyzes you with anxiety, that debt will hurt your academic performance, mental health, and future choices.
Your Life Plans
Want kids soon? Looking to travel? Planning to start a business? A massive student loan will limit your flexibility for years.
If your plan is to work steadily in a corporate role, paying down debt is manageable. If your dream is to freelance or run a volatile-income business, a big fixed payment can be a serious problem.
🔄 The Alternative Path: Learning Without University
Let’s be controversial for a minute: you don’t need a university degree for everything.
Careers Where the Degree Matters Less
In tech, design, writing, digital marketing, trading, entrepreneurship, and plenty of skilled trades, employers care more about results and portfolios than diplomas.
Mark Zuckerberg, Steve Jobs, and Bill Gates dropped out. Not because college is useless, but because for their goals, it wasn’t necessary.
No, we won’t all become the next Jobs, but the point stands: evaluate whether the credential is really necessary for your goals.
High-Quality Alternative Education
Today you have options that didn’t exist 20 years ago:
- Certified online courses: Coursera, edX, Platzi, and more
- Intensive bootcamps: Learn programming, design, or data analytics in months
- Structured self-learning: YouTube, books, personal projects
- Mentorships and apprenticeships: Learn directly from professionals
Formal education has value—especially for networking and structure. But it’s not the only path, and it rarely justifies 200 million in debt.
🎯 How to Make the Final Call
After all this analysis, here’s the checklist you should go through:
Ask Yourself Honestly
- Why do I want to study this? (If the answer is “I don’t know” or “because I have to,” hit pause.)
- How much do professionals in this field earn? (Find real numbers, not promises.)
- How much will it cost in total? (Include interest, not just tuition.)
- How many years will repayment take? (Run realistic numbers.)
- Are there cheaper alternatives? (Public universities, scholarships, shorter programs.)
- What happens if I can’t find a job right away? (You need a Plan B.)
- Can I live with this debt for the next 10 years? (Think about quality of life.)
Do the Exact Math
Grab a spreadsheet and calculate:
- Monthly cost while studying
- Total debt balance at graduation
- Expected monthly payment
- Expected starting salary
- Expected salary in five years
- How much you’ll have left after debt, rent, food, utilities
If you have less than 500,000 left after covering essentials, you’ll be financially stressed for years.
Talk to Professionals
Consult with:
- Recent graduates from your program (especially within three years of graduating)
- A financial advisor to structure the debt
- Professors or mentors in the field you’re interested in
- Your parents or guardians about realistic family support
✨ Bottom Line: It Depends on You
Going into student debt can be the best investment of your life—or the most expensive mistake. The difference lies in how much research and planning you do, and whether you’re making a conscious choice.
Borrow if:
- The degree has high employability and strong salary prospects
- Your ROI analysis checks out
- You have a clear repayment plan
- You’ve exhausted partial funding options
- You fully understand and accept the commitment
Don’t borrow if:
- You’re doing it because of social pressure
- The numbers don’t work
- Cheaper alternatives meet your needs
- You’re unsure about your major
- The mere thought of the debt gives you crippling anxiety
Remember: education is priceless, but debt is very real. You can educate yourself in many ways. Choose the option that aligns with your reality, your goals, and your peace of mind.
Your future self is counting on the decisions you make today.