College season is here. The applications are in and high schoolers are awaiting their acceptance letters like kids waiting for letters to Hogwarts. But are high school seniors prepared for the harsh reality of student debt? You may be overjoyed that you got into your dream college, but what price are you willing to pay for it?
The U.S. Education Data Initiative found that the average amount of federal student loan debt for a 4-year college graduate is $37,853. In perspective, that is enough money to buy a brand-new car and still have enough left over to buy a Rolex. Furthermore, the EDI revealed that private student loan debt on average can be up to $10,000 more than federal loan debt. Say goodbye to your hopes of new wheels and a fancy watch.
For some KHS students, the cost of attending college may not be an issue but for the rest of us, not all hope is lost. According to the EDI, “2024 Q1 is the third fiscal quarter in a row with an annual decline in student loan debt.” What does this mean? The total debt in the first quarter of the year has continued to decline by an acutely marginal amount. Try not to squeal in excitement just yet.
Now, these less-than-encouraging statistics have motivated students to seek out other options for further education or to not pursue post-high school education at all. The Education Data Initiative has also reported that undergraduate enrollment has fallen 7% since 2019. While many factors, including the COVID-19 pandemic, have caused this decline, there is a correlation between the rise in college tuition and the decline in enrollment.
U.S. News and World Report has been tracking the cost of higher education and it was recorded that the cost of tuition has skyrocketed by an average of 123% in private, public, in-state, out-of-state and national universities. If we take inflation into account this number becomes significantly less intimidating, but no less expensive.
Before your heart rate begins to spike and you rush to check your bank account, there are other options for students who fall into certain financial brackets. Recently, more colleges are pioneering an effort to eliminate student debt entirely for families making under a predetermined annual income. Some notable colleges that have instituted free tuition include the Massachusetts Institute of Technology. National Public Radio reports that in the fall of 2025 families making under a staggering $200,000 can qualify for free tuition at MIT. NPR found that most other schools a part of this free tuition initiative have thresholds under 75,000 or somewhere between the two.
Do not take this as a warning cautioning you from exploring higher education, but instead, as a friendly reminder that student loan debt is real and the interest that it collects will be your own to pay. When looking into your dream college, consider whether you want to spend the painstaking decades it will take to pay off or prefer to live and enjoy every moment unbothered by debt.