The Number That Stopped the Room
We put a number on the board: $30,000, the average student loan debt for a first-generation college graduate. Then we ran the math: at 6.5% interest over a standard 10-year repayment plan, that $30,000 becomes $40,600 by the time the final payment clears. The room went still.
That extra $10,600 doesn't buy a single credit. It's just the cost of borrowing: the tax on not knowing, on not having other options, on being first in your family to navigate a system built for people who already have resources.
"My parents told me student loans were just something you had to do. Nobody ever showed me what it actually cost to pay them back."
Good Debt vs. Bad Debt
We spent real time on good debt versus bad debt. Student loans and mortgages, managed intentionally, can be tools for building a future. Credit card balances at 24% APR are a trap. Payday loans are a crisis. Understanding the difference between debt that builds and debt that drains is one of the most important financial distinctions a young person can make.
Repayment Strategies
Students learned three core repayment strategies: the avalanche method (highest interest first), the snowball method (smallest balance first, for psychological momentum), and income-driven repayment plans for federal loans. Each student chose a method that matched their personality and mapped out a sample repayment timeline for their own anticipated debt load.
What's Ahead
Session 6 shifts to career exploration: a panorama across finance, accounting, fintech, and insurance, with a real look at the salary and entry point for each.