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College Loan Payback MicroSim

Run the College Loan Payback MicroSim

Edit the College Loan Payback MicroSim on the p5.js Editor

Sample iframe

Copy the text below directly into your course web page.

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<iframe src="https://dmccreary.github.io/finance-for-life/sims/college-loan-payback/main.html" height="400"  scrolling="no"></iframe>

Actual Figures for 2025

Annual College Costs

The annual “sticker price” of a year at a private undergraduate college in 2025 is expected to be $57,000.

By 2029, the average “sticker price” for a private four-year college could approach $65,000–$70,000 per year.

Student Loan Interest Rates Averages

According to Education.org, for the 2023–2024 academic year, the average undergraduate direct loan rate was 6.53%. This is the highest rate ever for college loans.

For Federal Student Loans for undergraduates, the federal Direct Loan interest rates have fluctuated between roughly 3.7% and 5.5% in recent years, tied to the yield on 10-year Treasury notes.

Annual Cost for Trade Schools

On average, one might see $10,000–$15,000 per year for many trade school programs.

Sample Prompt

Prompt

Create a new MicroSim that helps students calculate how long in years and months it would need to pay back a college loan. Use input controls for number of years in college (1 to 6), cost per year in college (default of $50K) with a rage control of values from $1K to $120K, Interest rate estimate in percentage using known averages as the defaults, and monthly payment after college. Add a "Calculate" button that will show the calculation intermediate results and the total time to pay back the debt.

Remember to use the MicroSim width-responsive Generation Rules in the Project Knowledge area so that the graphics and sliders adjust to the container size.

Note

A sample of MicroSim generation rules are here

References

Lesson Plan

Learning Objectives

After completing this activity, students will be able to:

  1. Calculate total college loan debt based on years and annual costs
  2. Analyze how interest rates affect repayment time
  3. Evaluate trade-offs between different college options
  4. Apply loan calculations to personal education planning

Target Audience

High school juniors and seniors planning for college.

Prerequisites

  • Basic understanding of loans and interest
  • Familiarity with college cost structures

Activities

  1. Research: Find the actual cost of attendance at three colleges you're considering
  2. Calculation: Determine monthly payments needed to pay off loans in 10 years
  3. Comparison: Compare loan burden from community college + university vs 4-year private

Assessment

  • Calculate your expected total student debt based on your college plans
  • Determine your monthly payment needed after graduation
  • Identify strategies to reduce your total loan burden