A $20K salary increase from an $80K online degree requires nearly a decade to offset costs, per financial analysis on debt repayment.
A 31-year-old worker with $58K in existing debt is evaluating an $80K online civil engineering degree to boost his salary from $62K to $82K. The plan would take 7-8 years to break even after accounting for taxes and interest, according to a financial assessment on *The Ramsey Show*.
The caller, Jason, currently owes $58K across a mobile home and two vehicles. Co-host George Kamel calculated that borrowing $65K-$80K for the degree would extend the break-even period, even with the promised $20K annual raise. Liquidating depreciating assets could reduce debt but would still require four years to graduate debt-free.
Kamel noted the math worsens with interest, stating, “We’re going to spend $80K to make $20K more, take you 4 years to break even—without interest.” The analysis highlights the financial strain of mid-career education debt for modest salary gains.