Higher Education: Does Debt Beat Savings?

Posted: 24 Jan 2020

Date Written: December 31, 2019


This paper investigates the possible opportunity cost of using standard college savings plans against the advantages of using debt to pay for college. In addition, it presents a practical argument for using debt in place of college savings plans in certain instances.

By doing so, investors may not only be able to mitigate the difficulty of saving, but also realize greater financial benefit in the long run.

Keywords: finance, family finance, financial aid, higher education, college savings

JEL Classification: G50, G51, D14, I22

Suggested Citation

Stackpole, David, Higher Education: Does Debt Beat Savings? (December 31, 2019). Available at SSRN: https://ssrn.com/abstract=3512143 or http://dx.doi.org/10.2139/ssrn.3512143

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