Priced Out: How Student Debt Is Shaping College Dreams
Williams | CLMI
For high school students, the thought of college comes with a bevy of mixed emotions. On one hand, college means freedom, independence, and the chance to chase dreams and the potential for opportunity and success. On the other hand, thoughts of student debt make many students fear if college is even worth it when the money isn’t there. As we see the reality of rising tuition - from news stories, studies and family crushed by lifelong loan payments - student debt is a big factor in how today’s teens consider their plans after graduation.
According to the Education Data Initiative, the student debt crisis in the United States is nearly $1.8 trillion in student loans - accounting for nearly 1% of GDP and growing. This affects more than 43 million people who borrowed money to pay for school, or nearly 13% of the U.S. population. The average American who borrowed money from the government owes over $37,000.
In terms of accumulated global student loan debt, the U.S. ranks #1, followed by the United Kingdom at nearly $270 billion where there are far fewer students. However, while the U.K. holds less in total national student loan debt, it’s ranks higher in terms of average debt per student at £53,000, or $72,000 in U.S. dollars.
Student loan debt can stop graduates from buying homes, starting families, or saving for retirement. Many people struggle to make payments, and some even default on their loans and face years of stress. The crisis is especially tough on low-to-moderate income students (including middle-class families) who have little in immediate access to funds and savings (40% of the population has no savings above $1,000), and it is particularly acute among students of color who are more likely to borrow significant sums of money, but in most instances do not have the resources to pay it back.
Racial Gaps
Black students are, by far, the most likely to borrow federal students loans for either a bachelor or associate degree, followed by Indigenous and Hispanic students …
As a result, they are faced with the highest student loan payments …
… and find themselves the least likely to stay current on repayments.
Meanwhile, rising tuition costs, interest rates, and limited access to loan forgiveness programs all contribute to the growing impact of student debt in the United States.
The Fear Factor
The rising cost of college and the fear of student loans are forcing many students to rethink college altogether. More young people are choosing to delay college, attend expensive schools … or skipping college because they worry the financial burden is just not worth it. Student debt then makes college feel inaccessible to many, especially those from lower-income backgrounds. This trend shows how the fear of debt is not just affecting graduates, but now shapes the educational choices of an entire generation. Recent surveys over the past few years reflect it. A September 2025 Gallup found just 35% of Americans ranking post-secondary education as important …
…. followed by a November 2025 NBC News poll showing an astounding 63% of Americans believing a four-year college degree is not worth the cost
A more recent I&I/TIPP poll finds 60% viewing college as not worth the cost …
And a Quinnipiac University poll released this month shows “a plurality” of Americans polled (44%) want the federal government to “increase” student loans, while 29% believe it “should remain the same,” and 18% believing “the amount should be decreased.” The sentiment that federal dollars should be increased is most prominent among Americans under 50 years of age.
Navigating It
Still, it’s all about guidance. Myah Crawford-Whyte, a Career and Technical Education Paraprofessional at Learn4Life public charter school in California, shared that while she has experienced student debt, it made her more careful about choosing cost-effective institutions and financial aid options. Students at her school, in turn, are rarely heard expressing concerns about student debt, likely because counselors effectively navigate students through support options such as the Free Application for Federal Student Aid (FAFSA).
However, she did note that financial worries can discourage some students from pursuing higher education, and she has seen students change their career paths or school choices due to the cost of tuition. As a once low-income college graduate, Crawford-Whyte was able to avoid major debt through a collection of grants and scholarships for her undergraduate studies. “I wish more students and families realized how many scholarships are available outside their chosen colleges,” she notes, emphasizing the importance of “research research research!” There are many affordable schools with comparable programs, and choosing a less expensive option can still provide a quality education and open doors for the future.
A report from Third Way explores how the fear of accumulating student debt is dramatically influencing the choices of today’s young people. Gen Z would rather take a paying job straight out of high school than risk being burdened by college loans. This anxiety about debt is leading students to consider alternatives like community college, trade schools, or skipping higher education altogether. Trade school enrollment grew by almost 6% between 2019-2023 according to a Validated Insights market research report …
Third Way highlights that for Gen Z, the prospect of owing thousands of dollars feels riskier and more overwhelming than the uncertainty of starting in a lower-wage job. This shift in mindset is a reflection of how the student debt crisis is not just a financial issue but a psychological barrier that is changing the way an entire generation approaches their dreams and career planning. (Third Way, 2023)
Brookings argues that despite the challenges of student debt, earning a college degree remains an investment for most people. College graduates, on average, make about $8,000 more per year than those without a degree …
While acknowledging the concerns around student loans and calling for reforms, Brookings’ maintains the long-term advantages of higher education, better career opportunities and higher earnings among them.
Across the country, colleges and universities are seeing a decline in attendance as fewer 18-year-olds are applying for admission. This trend, often called the enrollment cliff, is reshaping education as institutions face a shrinking pool of applicants and must adapt their strategies to attract new students. Demographic changes and shifting attitudes about the value of college continue being reasons behind this drop, raising important questions about the future of higher education in the United States.
The student debt crisis is clearly reshaping how young people think about their futures, influencing whether they pursue education and how they plan their careers. While college remains a pathway to opportunities for many, the reality of rising costs and long-term debt cannot be ignored. By raising awareness, exploring solutions, and making choices, students and families can better navigate the challenges ahead. Ultimately, improving access to education and addressing the student debt crisis will be key to ensuring that every student has a fair shot at success. The student debt crisis should push policymakers to solve it, yet movement and legislation lag.
JOHNYAE WILLIAMS is a Fellow at the Civic Literacy and Media Influence Institute at Learn4Life
