This hypothetical example is used for comparison purposes only and does not represent any specific investment or loan. Actual results will vary. $139,327 Monthly cost $1,161 Total cost 15 years 15 years 10 years 10 years $350 Although federal student loans typically have low interest rates, the cost of borrowing can still be very expensive compared with the financial resources required to accumulate savings. Consider the hypothetical example below, which compares a savings program to accumulate $100,000 over 15 years with a $100,000 loan (with a 10-year payoff period). The total out-of-pocket cost would be $63,000 for saving and investing, compared with paying $139,327 in principal and interest for borrowing. Borrowing Versus Saving Saving (15 years, 6% average annual return) Borrowing (10-year loan, 7% interest rate) $63,000
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