This might be too theoretical but it popped into my head this concept for attending University/College. If you had the ability to choose one of the following which is best in terms of you paying smallest over time?
- Cram an entire diploma into a single year and take on 30K in debt
- Distribute your diploma into 3 years taking on 10K in debt the first year, 10.5K in second, 11,025 in third (a rise in tuition by 5% per year)
Let's say immediately after graduation you get the same job and it increases every year by 2%. When the second option graduates it is making the same as the first option (i.e both are making the same amount 4 years from today). Both offer a 2.75% interest rate after graduation and both offer the same loan term after graduation (i.e 10 years after grad). Of course there is a lot of other factors but is there a right option given a certain circumstance? What if one of the constants like pay or loan term changes? What if the first option actually costs slightly more like 31K?