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2025 Investing Principles Recently Added May 27, 2025

Benefit of Saving vs. Borrowing for College

the current cost of college often exceeds $25,000 per year

So the question is, how much will college cost for your student?  If we assume a 4-year degree can exceed $100,000 in 2025 and that the future cost will rise by an average of 4.5% per year, take a look at the table to see what the expense may inflate to over time.


 Which choice would you prefer to pay for the rising cost of college?

Option 1: Save

  • Save $250/month for 18 years in a 529 Plan with a hypothetical growth of 6.5%
  • Total contributions: $54,000
  • Tax-deferred growth & tax-free distributions for qualified expenses
  • Contributions may be eligible for a state tax deduction
  • Future value: $102,085
  • Potential benefit from investment growth & tax deduction: $50,785

Option 2: Borrow

  • Take out a loan for $102,085
  • Hypothetical loan terms: 10 years at 6.5% interest
  • Estimated monthly payment: $1,159
  • Total repayment over 10 years: $139,098
  • Total interest paid: $37,013
  • Significant financial burden after graduation for the student or parents
  • Potential impact on credit score and future borrowing capacity
comparing the two options
  • The potential financial benefit of saving over borrowing is over $87,000.
  • Excess savings may also be eligible to roll to a Roth IRA for the student or designated to another student.
how strongbox wealth can help

We work with families to design personalized college savings strategies that fit into their broader financial picture by:

  • Balancing college savings with retirement plans, emergency savings, and lifestyle goals
  • Integrating tax strategy and estate plans to the overarching financial plan
  • Implementing an investment strategy aligned with liquidity needs, time horizon, and risk preferences
let us help you turn today’s savings into tomorrow’s opportunities

StrongBox Wealth, LLC is a Registered Investment Adviser. This brochure is solely for informational purposes. The views reflected here are subject to change at any time without notice. Nothing in this brochure constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person or entity. Advisory services are only offered to clients or prospective clients where StrongBox Wealth, LLC and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing in securities involves risk and possible loss of capital. No advice may be rendered by StrongBox Wealth, LLC unless a client service agreement is in place.

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brenden ellis

Brenden Ellis is a Wealth Advisor at StrongBox Wealth, where he works with individuals, families, and business owners to make thoughtful financial decisions with clarity and confidence. His work centers on retirement planning, tax-aware investment strategy, and long-term wealth planning, helping clients align their financial resources with their personal and professional goals.

A native of Lee’s Summit, Missouri, Brenden began his career in 2021 in Commerce Bank’s commercial lending training program. He later became a Healthcare Relationship Manager in Kansas City, specializing in physician practices. Through that role, he gained deep experience in physician equity structures, practice financing, and real estate lending. Working closely with medical professionals shaped his understanding of the complex financial lives of high-earning specialists and ultimately led him to transition into private wealth advising.

Brenden earned his Bachelor of Science in Finance from Iowa State University. He currently serves on the Board of Directors for Saint Luke’s East Hospital and lives in Prairie Village, Kansas with his wife, Nicole, and their dog, Theo.

Outside of work, Brenden enjoys racing triathlons and other endurance events, along with cheering on the Kansas City Chiefs and Iowa State Cyclones.

Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, and CFP® (with plaque design) in the United States to Certified Financial Planner Board of Standards, Inc., which authorizes individuals who successfully complete the organization’s initial and ongoing certification requirements to use the certification marks.