Student Loans and Faith: Counting the Cost Before You Borrow
"Suppose one of you wants to build a tower. Won't you first sit down and estimate the cost to see if you have enough money to complete it? For if you lay the foundation and are not able to finish it, everyone who sees it will ridicule you, saying, 'This person began to build and wasn't able to finish.'" — Luke 14:28-30, NIV
Student loan debt has exploded. The average American college graduate carries $37,000 in student debt. Some carry $100,000 or more. Meanwhile, college has become optional for many careers—you can start a business, learn trade skills, or climb into certain fields without a four-year degree.
Yet high school graduates face constant pressure: Go to college or you'll fail. The question that rarely gets asked: At what cost? What happens when you borrow $60,000 to earn a degree that leads to a $35,000/year job? Jesus taught to count the cost before you commit. This applies to student debt.
The Cost of Student Debt Is Larger Than You Think
When someone says "I'm borrowing $40,000 for college," they're usually quoting the borrowed amount. But the true cost is much larger:
Example: $40,000 in student loans at 6% interest over 10 years
- Amount borrowed: $40,000
- Total interest paid: $6,600
- Total cost: $46,600
- Monthly payment: $466
But there are hidden costs too:
- The income that could have been earned if you'd worked instead of studied (opportunity cost)
- The debt's impact on other financial goals (home purchase, starting a business, marriage)
- The psychological burden of debt
- The constraint on career choices
When a graduate takes a lower-paying job because it's "less demanding," partly because they're struggling to pay loans, that's a hidden cost. When they can't contribute to their church or help family, that's a hidden cost. When debt delays marriage or homeownership, that's a cost.
The true cost of $40,000 in student loans often exceeds $100,000 when you factor in opportunity costs, lost earning potential, and delayed financial goals.
The Key Question: Will This Degree Create Value?
Before borrowing for college, ask one central question: Will this degree increase your earning potential enough to justify the cost?
The answer varies by degree, school, and career:
| Degree | Typical Starting Salary | ROI (10-year) | Recommendation |
|---|---|---|---|
| Engineering | $70,000 | Strong positive | Generally worth borrowing for |
| Education | $35,000 | Marginal | Borrow cautiously |
| Business | $50,000 | Moderate positive | Worth borrowing, be selective |
| Humanities | $32,000 | Weak | Borrow minimally or avoid |
| Trade certifications | $45,000 | Strong positive | Often better than college |
The problem is that many people borrow for degrees that don't significantly increase earning potential. Someone who borrows $50,000 to get a humanities degree leading to a $35,000 job has made a poor investment. They'll spend 15 years paying off debt for a degree that didn't increase their earning power.
In contrast, someone who borrows $40,000 for an engineering degree leading to a $75,000 job breaks even in about 4 years and comes out significantly ahead.
The Trade School Alternative That Few Consider
One major trend being ignored: Trade school degrees and professional certifications often create better financial outcomes than four-year degrees, with less debt.
A person could:
- Spend 2 years in electrician training (cost: $10,000)
- Start earning $50,000-60,000/year immediately
- Build a business and eventually earn $100,000+
Versus:
- Spend 4 years in college (cost: $80,000 in loans)
- Start earning $40,000/year
- Pay $400/month for 10 years
- Never earn significantly more without a graduate degree
Yet our culture elevates four-year college degrees and stigmatizes trade skills. From a pure financial perspective, trade skills often win. Biblical wisdom involves seeing through cultural preferences to actual outcomes.
What Jesus Meant by "Counting the Cost"
In Luke 14, Jesus tells a parable about someone starting to build a tower without first calculating if they have enough resources to finish. The point: Don't commit to something you can't complete. Don't start what you can't finish.
This applies directly to student loans. If you borrow $60,000 but can only afford to pay $200/month, you're starting a tower you can't finish. You'll be paying for decades. The debt will extend into your 40s and beyond.
Counting the cost means:
- Calculating what the degree will actually cost (principal + interest)
- Estimating what salary the degree will lead to
- Determining if the salary supports the debt payment
- Being realistic about worst-case scenarios (job loss, industry decline)
- Considering alternative paths
Many students skip this entire calculation. They just enroll. They assume it will work out. They don't count the cost.
The Responsible Approach
If you're deciding about college or helping a child decide, here's a responsible framework:
Step 1: Define the career goal. Not "I'm going to college because I'm supposed to." But "I want to be a [specific profession]." Does that profession require a degree? What degree?
Step 2: Research salaries. What does someone in that career actually earn? Not the best-case scenario, but the typical starting salary and typical mid-career salary. Sites like Bureau of Labor Statistics or PayScale provide real data.
Step 3: Calculate the ROI. If you're borrowing $60,000 and the career path offers $45,000 starting salary, will the degree create enough additional income to justify the debt? Run the math.
Step 4: Explore cheaper options. Can you get the same credential from a cheaper school? Community college first, then transfer? Online program? Trade school? Part-time work plus school?
Step 5: Commit to cost boundaries. If you do borrow, set a maximum. Don't borrow more than you can pay back within 10 years. Most financial advisors suggest borrowing no more than your expected first-year salary.
Step 6: Plan for partial payment during school. If possible, work part-time during college. Contribute $2,000-5,000 toward college costs yourself. This forces realistic evaluation and creates skin in the game.
The Case Study: Two College Decisions
Sarah: Attended a state school, majored in Business, cost $60,000 in loans. Started at $55,000 salary. Paid loans off in 7 years. Now earns $95,000 and is grateful for the degree. Strong ROI.
Michael: Attended a private college, majored in Philosophy, cost $120,000 in loans. Started at $32,000 salary. Still paying loans 12 years later. Has changed careers multiple times seeking higher pay. The degree didn't create the value he expected. Poor ROI.
Jessica: Skipped college, did a 2-year trade program in HVAC, cost $12,000. Started at $48,000 salary. Started her own company at 28, now earns $150,000. Excellent ROI.
Each made different choices based on different goals and risk tolerance. The key: They (or their parents) counted the cost before committing.
Red Flags: When NOT to Borrow
Don't borrow for college if:
You don't have a career goal. "I need a degree to get a job" is too vague. Know what job.
The degree doesn't lead to higher income. Going to college for a degree that leads to a $30,000 job when you could earn that without a degree doesn't make financial sense.
You can't afford the monthly payment. If the monthly loan payment will be more than 10% of your expected salary, don't borrow.
You're academically unprepared. Borrowing $60,000 to fail out of college is a tragedy.
You're under pressure from parents. Your debt, your decision.
The school is extremely expensive. Taking out $100,000+ in loans for an undergraduate degree is rarely wise unless it's for a high-ROI degree.
Alternatives Worth Considering
Before borrowing for college, consider:
- Community college (cheaper first two years)
- State school (not private colleges)
- Trade school or certification programs
- Apprenticeships (earn while you learn)
- Online degrees (often cheaper)
- Working and studying part-time
- Employer tuition assistance programs
- Military service (GI Bill for education)
- Scholarships and grants (free money)
The Biblical Principle: Diligence and Wisdom
Proverbs 22:3 says: "The prudent see danger and take refuge, but the simple keep going and pay the penalty." The prudent person (you) should see the danger in borrowing $80,000 for a degree with poor ROI.
Diligence means doing the work to understand true costs and true outcomes before committing. Wisdom means choosing the path that actually works, not the path culture says you should take.
Sources
- Bureau of Labor Statistics salary data
- College cost and student debt statistics
- ROI analyses of college degrees by field
- Trade school outcomes and earnings
- Luke 14:28-30 and biblical wisdom on planning
- PayScale and similar salary research platforms