Paying education fees upfront instead of taking a loan means forfeiting potential market returns (estimated at 14-15% CAGR) over the loan's typical 10-year duration.
"And this is where opportunity cost comes into place right Now by then I had already invested a majority of my dad's portfolio into mutual funds, right? And this was the bull run, right? During the COVID time and the markets were doubled in a single year, assuming markets don't double, right? Not let's say assume this is not COVID times. And let us assume that we are considering a time period of 10 years, right? Because an education loan, let's say typically lasts for 10 years and I'm comparing should I transfer my dad's 50 lakhs 10 years in the markets versus giving it to Colombia Business School one shot."
