A Program of the Tennessee Department of Treasury · David H. Lillard, Jr., State Treasurer

Saving vs. Borrowing

See how the power of compounding interest can work for you.

Family at dinner table with piggy bank, saving, piggy bank

Put the power of savings to work for you!

For the 2016/2017 school year, the total cost of 1 year, including room and board, averaged $43,921 for a private, nonprofit school and $19,548 for a public, in-state school.* Most incoming freshmen had to take out substantial student loans in order to afford these costs.

Saving with TNStars can help free families from the burden of loans.

In the same way that compounding interest over a long period of time can significantly increase your savings, repaying interest on a loan over a long period of time can significantly increase debt—debt that college graduates often have a difficult time repaying with an entry-level salary.

For example, if you save $23,400 (or $25 a week) with TNStars over 18 years, that could add up to $42,000 for college. A family who borrows that same $42,000 could end up repaying almost $60,000.

So, there's no time to waste—the time to start saving for college is now!

Our savings calculator can help you decide how much you will need when it’s time for college:

College Savings Calculator

Saving for college vs. borrowing

So what are you waiting for? Open an account today!

Open a new TNStars account