The rates in your life, on one chart
Every rate in your life, on one chart.
Paying off a loan is a guaranteed return at its rate. Stocks have averaged about 10% a year since 1928, but with years like 2008 (about −37%). So a 7% student loan isn't "7% vs 10%". It's 7% for sure vs about 10% with big swings.
On screen
- Your student loans charge 6–8%. Is investing really beating that?
- Every rate in your life, on one chart (bars count up): 10-year Treasury 5.2%, mortgage 7.4%, car loan 7.5%, student loans 6–8% (federal grad, by year borrowed), S&P 500 ~10% (long-run average, not guaranteed), credit card 22.4%. Rates as of Oct 2026, sources listed.
- The catch: paying off debt is a guaranteed return. Stocks have averaged ~10% a year, but not every year: about −37% in 2008.
- So the real choice: your loan rate for sure, or ~10% with big swings?
- And one easy call: nothing reliably beats paying off a 22% credit card. Save this. Education, not advice.
Sources
- 10-year Treasury yield 5.24% (Oct 9, 2026): FRED, DGS10
- 30-year fixed mortgage 7.40% (Freddie Mac, Oct 8, 2026): FRED, MORTGAGE30US
- New-car loan, 48 months, 7.47% (Aug 2026): Federal Reserve G.19 via FRED, TERMCBAUTO48NS
- Credit card rate on accounts assessed interest 22.36% (Aug 2026): Federal Reserve G.19 via FRED, TERMCBCCINTNS
- Federal graduate loan rates are fixed by the year first disbursed: Direct Unsubsidized 4.30% to 8.08% since 2017 (8.07% for 2026-27), Grad PLUS one point higher: Dept. of Education, 2026-27 rates
- S&P 500 with dividends, about 10% a year on average 1928-2025, and about −37% in 2008: Aswath Damodaran, NYU Stern, historical returns