The Cost of the College Path

College can be an important investment in a student's future—but for many families, it can also mean taking on significant student-loan debt, in addition to family tuition payments.

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As of June 2026, Americans held approximately $1.65 trillion in outstanding student-loan debt. Federal data shows that about 55% of bachelor's degree recipients borrow federal student loans, with those borrowers owing an average of about $26,400 at graduation.

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And the debt doesn't necessarily disappear quickly. Four years after graduation, federal borrowers from one recent cohort still owed an average of 78% of the amount they had originally borrowed.

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What Does That Mean for Students?

A standard federal student loan is generally structured around a 10-year repayment period, but depending on the repayment plan, income, additional borrowing, deferments, or other circumstances, repayment can extend to 20–25 years or longer.

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That doesn't mean college is the wrong choice. For many students, a college degree is an important step toward the career they want. But understanding the cost—and the alternatives—can help families make a more informed decision.

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College Isn't the Only Path

College is one option among many. Trade schools, apprenticeships, technical programs, certifications, and other career-training opportunities can provide students with education and skills while potentially reducing the amount of debt they take on.

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The goal isn't to choose the least expensive path. It's to find the path that makes sense for the student, their goals, and the career they want to build.

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Sources: Federal Reserve Bank of New York, National Center for Education Statistics, Congressional Research Service, and Federal Student Aid.