College Planner (FIES vs. Saving)

Calculate the estimated total cost of a private undergraduate course in Brazil. Compare the effort of accumulating capital monthly before the course with the contracting of student financing such as FIES or private bank credit.

Default Courses:

Medicine ($8,000/month, 6 years) Engineering ($1,500/month, 5 years) Administration ($1,000/month, 4 years)

Planning Parameters

Current College Monthly Fee

Current monthly fee price.

Time Until Course Start

years

Time available to save before classes.

Course Duration

Real Return Rate of Investments

% p.a. real

Net yield above inflation for savings.

Financing Interest Rate

% p.a. nominal

The classic FIES has zero interest (0%). Private credit ranges from 6% to 9% p.a.

Financed Percentage

Fill in the data and click on Simulate Planning to see the comparison.

$0.00

Nominal Cost of the Course

$0.00

Monthly Contribution Saving

$0.00

Total Spent Investing

$0.00

Total Paid in Financing

$0.00

Interest Paid in Financing

$0.00

Savings in the Saving Method

Total Cost Disbursed

Financial Flow Simulation Over Time

General Cash Flow Comparison

Specification	Saving Strategy (Anticipated)	Financing Strategy (FIES/Credit)

Student Financing (FIES) vs. Prior Investment: What is more worthwhile?

Paying for a higher education college in Brazil represents one of the largest patrimonial investments a family makes. Competitive courses like Medicine can exceed $500,000 in nominal monthly fees. There are two main ways to approach this planning: saving the capital before starting or taking credit and paying the bill over many years after graduation.

How does FIES work in Brazil?

The Student Financing Fund (FIES) is a program by the Ministry of Education that finances the monthly fee of courses in private higher education institutions for students who meet family income criteria. Currently, the zero-interest modality benefits students with lower incomes, charging only minimal monetary corrections. However, the post-graduation payment rules are severe:

Grace Period and Amortization: The student pays a minimum coparticipation rate during classes. After graduation, the payment is deducted directly from the salary as soon as the graduate gets a job, with terms that last up to 3 times the course duration (e.g., 15 years to pay off a 5-year college).
Private University Credit: Traditional banks offer interest rates of 6% to 9% p.a. In this modality, the final cost of the course can double in accumulated interest.

The Power of Anticipated Investment

By planning for a young child or for oneself in the medium term (e.g., starting the course in 5 or 10 years), compound interest works in your favor. Saving monthly in a secure fixed-income asset like Treasury IPCA (inflation index)+ (which yields above inflation) allows creating a portfolio that will pay for the course upfront (usually with aggressive discounts at the college), in addition to earning dividends during classes.

The simulation shows that savings in the Saving method occur because you finance yourself, accumulating earnings, while in financing, you pay for the cost of money over time to the banking institution.

Frequently Asked Questions

For the classic FIES for low-income families (up to 3 minimum salaries per person), the real interest rate is 0% p.a. However, the debt balance undergoes periodic corrections. For P-FIES (aimed at higher incomes with partner banks), rates are variable and negotiable, generally ranging from 5% to 8% p.a.

If the graduate does not have formal income soon after graduation, FIES provides for the payment of a minimum monthly installment (basic amortization). The debt balance continues to be corrected. The Over-indebtedness Law and specific government renegotiation agreements periodically open settlement rounds with discounts of up to 90% to settle overdue FIES debts.

The best option for long terms (over 5 years) is Treasury IPCA (inflation index)+ titles (such as Treasury IPCA (inflation index)+ with semiannual interest or Treasury RendA+ focused on education/retirement). They shield capital against inflation and guarantee a contracted real return, matching the title's maturity with the planned college entry year.