How we calculate payoff

The model, step by step

• Debt at graduation. Each college type carries a typical four-year borrowing total drawn from published averages: roughly $37,000 for an in-state public path, more for out-of-state and private paths. The path builder assumes the cost is split 50/50 with family and the student’s share is borrowed; the budget showcase lets you change who pays and whether the rest is borrowed or paid as you go.
• Loan payment. We amortize the borrowed amount over the standard 10-year federal repayment term at a fixed 6.2% APR, using the standard loan payment formula. That is one payment, every month, for ten years.
• Starting salary. Each field of study uses an average starting salary for new graduates in that field, via Bankrate’s published averages. Your offer will differ by school, employer, and city.
• Take-home pay. Monthly salary minus an effective tax rate that rises with the cost tier of where you live (17% in a lower-cost town up to 25% in a major metro). This is a deliberate simplification of federal, state, and payroll taxes combined.
• Rent and living costs. Each location tier carries a typical rent ($980, $1,300, or $2,150 a month) and scales a baseline of roughly $1,080 a month for food, phone, and getting around by its cost-of-living factor.
• Lifestyle extras. Fixed monthly amounts for the optional extras: car payment and insurance $375, going out $220, streaming $100, investing $150, pet $90.
• The bottom line. What is left over each month is take-home pay minus rent, loan payment, living costs, and any extras you switched on. The path builder’s letter grade is just that leftover mapped onto bands (an A+ needs about $2,200 a month of headroom; below zero heads toward D and F).

Where the statistics come from

The statistics quoted around the site (underemployment, repayment status, total student debt) come from these public sources:

• Federal Reserve Bank of New York: The Labor Market for Recent College Graduates - Unemployment and underemployment rates for recent graduates.
• Federal Student Aid: Portfolio summary - Outstanding federal student loan balances, borrower counts, and repayment status.
• College Scorecard - Per-school cost, median debt, and median earnings data published by the U.S. Department of Education.
• U.S. Bureau of Labor Statistics: Occupational Employment and Wage Statistics - Wage levels by occupation and metro area.
• Bankrate: average starting salaries by field of study - The starting-salary averages behind the field picker in the path builder.

What the model deliberately leaves out

These previews are built to show how the trade-offs move, not to price your exact situation. They do not model scholarships, grants, or financial aid offers; interest rate changes or income-driven repayment plans; salary growth over the ten years of repayment; your actual tax situation; or the real rent on a real lease. The full product is being built to replace these averages with live, per-school and per-city data.

The fine print

Everything here is general information for exploring trade-offs, not financial advice or a recommendation. Real costs, aid, salaries, and outcomes vary widely; always confirm numbers with the school, the lender, or a qualified professional before making decisions. The Terms of Service spell this out in full.